The USDCHF did move lower and to a new low going back to March today after the lower Employment Cost data. The move lower did fall below the 50% of the move up from the December 2023 low at 0.8777. Recall from last week, the price based against that level and bounced.
Today, the sellers had their shot below the key target. They missed.
With the “miss” it opens the door for traders to lean against the 50% again in hopes that the failure shifted the mindset of traders from selling to buying. If so, the price should NOT go below the 0.8777 level. ON the topside, traders will target the swing area between 0.8818-25 and above that the 100-hour MA at 0.88316.
Traders will have a decision at that level – do they push higher and head toward the 200-hour MA (green line on the chart below), or lean and sell setting up a battle between buyers and sellers between the close technical levels?
This article was written by Greg Michalowski at www.forexlive.com. Source