The USDCHF is making a break to the upside after extending above the 100-hour moving average at 0.85913 (blue line in the chart below).
The price of the pair has moved up to test the high price from Monday and Friday at 0.86307. Sellers leaned again against the level on the test.
It will take a move above that level to increase the short-term bullish bias. The 200-hour moving average at 0.86623 (green line in the chart below) would be the next upside target on further momentum. The price has not traded above that moving average since July 6.
The last 6 days had seen the price consolidate up and down between 0.8554 and 0.8631 (77 pips – that’s not a lot). Buyers and sellers are battling it out. The 100-hour moving average was broken yesterday, but that break failed.
The question going forward is can that moving average level hold, and if so can the buyers ultimately get back above the 200-hour moving average?
Looking ahead from that level, the 38.2% retracement of the move down from the July 6 high comes in at 0.87235. Getting above that level would still be needed to give the buyers more confidence (and control) after the sharp move down from the July 6 high.
Yields are helping today. The 2 year yield is up 10 basis points at 4.864%. The 10 year is up close to 10 basis points as well.
This article was written by Greg Michalowski at www.forexlive.com. Source