The USDCHF has moved higher this week. The low for the week was on Monday. In the current 4-hour bar, the price is making new highs. So buyers have been in control.
On the way to the upside, the price moved above the 200 bar moving average on the 4-hour chart. That level comes in at 0.8608. Yesterday and today, the 38.2% retracement of the move down from the October high has been breached at 0.8680. Admittedly, the process has been trading above and below that retracement level today, but buyers are now pushing higher. Can those buyers keep the price above the 38.2% retracement now?
On the topside, the next target comes in between 0.8711 and 0.8727. The 50% midpoint of the same trend moved lower from the October high comes in at 0.8788. Those levels would be targets on further upside momentum.
If the price were to move back below the 38.2% retracement at 0.86803, a rotation back toward 0.86307 would be a downside target where buyers can look for support. Move below that level and hopes of extending to the upside start to lose more of its attraction.
This article was written by Greg Michalowski at www.forexlive.com. Source