USDCHF retracement support boosts buyer confidence

The USDCHF trended higher this week, and yesterday extended above the 200 bar moving average on the 4-hour chart, and the 38.2% retracement of the move down from the early November high to the December low. However, after peaking at 0.8685, the price started to retrace, and in the early Asian session today the 38.2% retracement was retested at 0.86298. Buyers leaned against the level and pushed the price higher. The stronger-than-expected initial jobless claims, pushed the USDCHF higher and to a new session high over the last hour or so of trading. The high price has reached 0.8689.

What next?

Staying above the 38.2% retracement is a requirement to keep the buyers more in control. A closer support level now might be the 0.86504 level. That level was a support and resistance level in mid – December (see video).

On more upside momentum, the swing high from mid-December at 0.87116 and the 50% midpoint of the move down from the November high comes in at 0.87218. Getting above the 50% midpoint would add more bullishness to the bias.

This article was written by Greg Michalowski at Source