The USDCHF waffled up and down during yesterday’s trade, but late yesterday early today, the price did find support buyers against its 200 day moving average and 38.2% retracement near 0.8883.That was “the tell” for traders, and the buyers entered.
The price has since moved higher and extended above the 38.2% retracement of the move down from the July high. That level comes in at 0.8907 and is now close support. Staying above that level will have traders looking toward the 50% midpoint at 0.8934 followed by the 200 and 100 bar moving averages on the 4-hour chart at 0.8943 and 0.8954 respectively.
On the downside, it would take a move back below the 0.8880 – 0.8898 level to give the sellers more confidence and control. The sellers had their shot last week below that level but found support buyers near the support swing area between 0.8919 and 0.8925. That started the move back to the upside.
Buyers in control Can they keep it today and probe higher?
This article was written by Greg Michalowski at www.forexlive.com. Source