The USDCHF moved higher last week ahead of the U.S. jobs report, reaching session highs near a key technical level on Friday. The pair stalled just below the 50% retracement of the May decline, with the high touching 0.817031—just short of the 0.8172 midpoint.
Following the weaker-than-expected U.S. jobs data, the pair dropped sharply, breaking below the 100-hour moving average (blue line) and falling into a support zone between 0.8017 and 0.8023. Buyers leaned against this area, helping to lift the pair into the close.
To start the new week, early weakness once again tested both the swing area and the rising 200-hour moving average (green line). Support held, triggering a rebound that carried the price back toward the 100-hour moving average at 0.8093. However, sellers defended that level, pushing the price back down into the range between the moving averages and within a secondary swing zone between 0.8054 and 0.8062.
Traders leaning against the two key moving averages—the 100-hour and 200-hour—have found that strategy effective recently. As noted in earlier posts, these levels continue to offer valuable trading cues.
The price action today reinforces their importance: the market has stalled near both moving averages, suggesting a period of consolidation as buyers and sellers battle for control following Friday’s sharp decline.
In short, the market appears to be “buying time” before the next directional break.
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Sellers can look to lean against the 100-hour moving average and watch for a downside break.
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Buyers may look to enter near the 200-hour moving average, with a focus on a potential break above the 100-hour for confirmation.
These technical levels remain key short-term barometers for market sentiment and should continue to guide intraday positioning.
This article was written by Greg Michalowski at investinglive.com.