The USDCHF has broken to the upside today at 18 price moved above its 100 bar moving average on the 4-hour chart had 0.8486. Recall from last week the high price for the week stalled right near that moving average and found willing sellers. Breaking above today is a technical shift to the upside. It also sets the moving average at 0.8486 as a close support level. Staying above is more bullish.
Although it is a break, there is additional work to be gone to show that the buyers mean business . More specifically, the 38.2% retracement of the move down from the mid-August comes in a 0.8517. That is also a ceiling going back to September 18. The price needs to get above that level to show the buyers want to take the price higher.
Also in play is a high of the “Red Box” that has confined the pair mostly since August 20. That level comes in at 0.85368 .
So although there has been a break today and risk is at that breakpoint at 0.8486, there is work to do to increase the bullish bias. However, the roadmap is clear. The question is can the buyers keep the momentum going in the upside direction?
This article was written by Greg Michalowski at www.forexlive.com. Source