The USDCHF is extending to new highs after breaking above the swing highs from earlier this week and also last week at 0.88273. Staying above that level is more bullish.
The break to the upside has also reached the 50% midpoint of the move down from the end of May high. That level comes in at 0.88497. The high price just reached 0.8852.
Getting above the 50% retracement would have traders targeting the high of a swing area between 0.8514 and 0.8866. Above that, traders would look toward the 100-day moving average currently at 0.88912. The last time the price moved above that moving average was back on May 31 when the rally stalled and the trend move to the downside began.
If the 50% holds resistance, traders would look back down toward the high from last weekend earlier this week and 0.88274 short-term clues. Break below and we should see buyers turn more to sellers once again.
This article was written by Greg Michalowski at www.forexlive.com. Source