The USDCHF is rebounding today, after falling yesterday on the back of the weaker retail sales. What is key technically is that on the run lower yesterday, the price did move back below the 200-day MA and then the 100 day MA, but held support right at the 50% of the move down from the October high to the December low. That level came in at 0.8785 and that is what bottomed the pair.
Today, the price low – after breaking back above the 100-day MA near 0.87984 – stalled a corrective move at that MA. The buyers took control and pushed the price higher.
What next?
The price still stays below eight 200-day moving out at 0.88456 (green line in the chart below). To open the door for further upside, getting and staying above that moving average is required. Close risk remains at the 100-day moving average and 50% retracement between 0.8785 and 0.8798. Breaking below those levels would disappoint buyers looking for more upside in this pair (at least in the short term).
This article was written by Greg Michalowski at www.forexlive.com. Source