USDCHF remains in an up and down trading range but with a bearish bias. Here is why.

The USDCHF held resistance near the 100/200 hour MAs today near 0.8966 (both of those MAs are converged – see chart below), but still remains confined by the 116 pip trading range since June 15. In addition to staying below the MAs (bearish),, the price also moved below a swing area between 0.89347 and 0.8947. That area is now a close risk for sellers. Stay below is more bearish.

Since the jobs report, the high corrective price moved to the high of that swing area, and true to the levels importance, sellers leaned. The close resistance is set.

On the downside, getting below the lows going back to June 15 is the obvious hurdle. Those levels come between 0.8901 to 0.89116. Get below that area, and the pair is exiting the “red box” that has confined the pair over the last 16 days of trading.

This article was written by Greg Michalowski at Source