The USDCHF broken above the 200 hour MA and the 38.2% earlier today and moved toward an upside swing area between 0.8548 – 0.8565 . After a corrective move lower took the price below the broken 38.2% at 0.85185, the 200-hour MA near 0.8507 did hold.
The inability to move back below both those levels keeps the buyers in play/in short-term control. It would take a move below both the 38.2% and the 200-hour MA now to upset the short-term buyers.
However, if the levels can hold support, the swing area up to 0.8565 and the 50% of the December trend move lower at 0.8576 would be the next targets to get to and through. Get above those levels and the bullish door opens further.
December was about the selling of the USDCHF. The last two days to start 2024 have seen upside momentum and some technical breaks. Can the buyers keep the momentum going? Watch the new support levels for clues.
This article was written by Greg Michalowski at www.forexlive.com. Source