The USDCHF moved higher off of the Fed Chair comments and in the process has extended above its 200-hour moving average currently at 0.9024 and the broken 38.2% retracement of the move up from the October 24 low. That level comes in at 0.9026. Staying above both those levels would now keep the bias more to the upside.
Conversely, a move below and traders would likely be disappointed in the failed break.
Helping the bullish bias is that the price is also above the 100-hour moving average currently at 0.8994, and the 200-day moving average at the 0.9000 level. Before the run to the upside, the price based near that 100-hour moving average (at 0.8994 currently) keeping the buyers “still in play”. The break above the 200-hour moving average increased the buyer’s control.
This article was written by Greg Michalowski at www.forexlive.com. Source