The USDCHF tumbled yesterday, and in the the process fell below a key cluster of support near at 0.8900. At the level is the:
- 100-day moving average
- 50% midpoint of the move up from the July low
- Natural support at the level
- Swing level from different lows and highs going back to September
Falling below that level increased the bearish bias, and gave more control to the sellers. In trading today, the high price has remained below the level. The high price today has reached 0.8892.
On the downside, the low price today extended into a swing area between 0.8851 and 0.8866. That area was started in April and May and was reestablished in July, August, and September. The first test today stalled the fall, and the price has rebounded.
So technical buyers at 0.8851. Resistance at 08900. Traders will be looking for a break. However, sellers are more in control below the 0.8900.
This article was written by Greg Michalowski at www.forexlive.com. Source