The USDCHF has eased slightly ahead of the FOMC rate decision, retreating below key resistance levels: the swing high at 0.9077 and the 200-hour moving average (MA) at 0.9068. Reclaiming these levels would shift the technical bias in favor of buyers.
On the downside, the 100-hour MA at 0.9048, which was briefly broken yesterday, now serves as a pivotal support level. Today’s USD strength has pushed the price back above this critical barometer, but a move below it would reinforce bearish momentum.
If the price falls below the 100-hour MA, the next targets include the 38.2% retracement of the December rally and the swing area near 0.90209. These levels will be crucial for determining further directional bias.
This article was written by Greg Michalowski at www.forexlive.com. Source