The USDCHF has chopped parsley higher this week. On the downside, a swing area support held near 0.8742. On the top side, there were some modest moves above a swing area high near 0.88193 that failed. However, as we head closer to the close for that week, the price is retesting that swing area between 0.8805 and 0.88193.
If the price can get above that swing area and stay above the area, the next key target comes against the 50% midpoint of the move down from the June high at 0.88497. A swing area between 0.8851 and 0.8866 is near that midpoint level. Move above that and the 100-day moving average of 0.8902 would start to attract traders’ attention as a key resistance target.
Conversely, should the price move below the 38.2% retracement of the same move higher from the June high at 0.8779, and a swing level at 0.8782, would weaken the bullish bias and have traders looking back down toward the 100 and a 200 moving averages on the 4 hour chart between 0.8739 and 0.87499.
For now, however, the buyers are making the play with a move above 0.88193 increasing the bullish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source