The USDCHF moves higher to a new high in the late London morning session. The high price moved up to test the 38.2% of the move down from the June 30 high, and an old rising trend line. Those levels were both broken on Friday, but failed. The buyers had their shot. They missed.
Today, those technical levels found willing sellers (sellers leaned), and the price of the USDCHF moved lower.
The move lower has seen the price approach the 100 and 200-hour MAs. The 100-hour MA is at 0.86586. The 200-hour MA is at 0.86507. Support buyers have leaned against those levels (they did it on Friday as well). The price has seen a modest bounce higher.
What next?
The support and resistance levels are defined.
- Move above the 38.2%/old trend line near 0.87297 and the buyers take more control.
- Move below the 100 and 200-hour MAs at 0.86586 and 0.86507 and the sellers take more control.
IN between and the buyers and sellers battle it out.
This article was written by Greg Michalowski at www.forexlive.com. Source