The USDCHF has moved lower with the reversal lower in the USD on the back of the weaker US data today. The move lower has seen the price extend below a swing area between 0.8805 and 0.8827, and down to test its rising 100 bar moving average on the 4-hour chart at 0.8789.
Support buyers have leaned against that level and pushed the price back toward the 0.8800 level.
What next?
Traders will watch at old swing area as topside resistance (see the red number circles on the chart below). Stay below that level keeps the sellers and play. However, getting below the 100-bar moving average and staying below that moving average (and the broken 38.2% retracement of 0.87795) would increase the bearish bias.
Conversely, it would take a move above 0.8705, and then 0.8727 to give the buyers more confidence.
This article was written by Greg Michalowski at www.forexlive.com. Source