Near the start of the US session, the USDCHF was testing the 100/200 hour moving averages (MAs – blue and green lines in the chart above). After falling below these levels, the price moved down to test the high of a swing area between 0.9048 and 0.9056. Buyers entered and pushed the price back higher. On cue, sellers entered against the 100-hour MA (blue line on the chart below), causing the price to wander lower.
As we approach the end of the day and look forward to the new trading day, the technical levels remain unchanged. Staying below the 100/200 hour MAs keeps the sellers in control. Moving above these levels shifts the bias back towards the buyers. A move lower and below the swing area (and staying below) would open the door for more selling.
Traders should keep a close watch on these key levels to gauge market sentiment and potential future price movements.
This article was written by Greg Michalowski at www.forexlive.com. Source