The USDCHF has been trading in a fairly narrow trading range over the last 8-9 trading days. The low has come in just above the 0.8900 level at 0.8901. The high price reached 0.90129. So 112 pips have confined the pair.
Sitting between those extremes is the near-converged 100 and 200-hour moving averages currently at 0.8955. In trading today, the price moved back above those moving averages tilting the short-term bias back to the upside once again.
Admittedly the price has been trading above and below those moving averages over the last 4 trading days. That is what happens in a non-trending market looking for a directional move. Nevertheless, being above it is more bullish.
On the topside, traders will be watching the 38.2% retracement of the move down from the May 31 high. That level comes in a 0.8995. Above that is the swing high over the last 8/9 trading days at 0.90129.
Should the 100/200 hour moving averages be broken once again, the bias tilts back to the downside once again and lower swing lows seen over the last few days become the targets.
This article was written by Greg Michalowski at www.forexlive.com. Source