The USDCHF moved sharply higher yesterday after the stronger-than-expected CPI. The move to the upside extended above the 50% retracement of the move down from the October high. That level comes in at 0.8788. The 100-day moving average. That level comes in at 0.8806, and the 200-day moving average. The level comes in at 0.88466.
The breaks of those key targets tilted the bias more in favor of the buyers. The best-case scenario going forward is for the 200-day moving average to hold support. Stay above 0.88466 is the most bullish scenario.
Having said that on the topside, the 61.8% retracement of the same move to the downside looms ahead at 0.88957. That level is also joined by different swing lows and highs going back to September, October, and November 2023. So the 0.8900 will be a key target going forward. Getting above increases the bullish bias even more.
The buyers are taking control above the cluster of targets broken yesterday. The 61.8% retracement in the 0.89000 level remains as another key hurdle, but given the momentum, it’s a matter of keeping that momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source