The USDCHF has found a stall point on the downside with a cluster of support defined by the:
- 100 day moving average at 0.8900
- 50% midpoint of the move up from the July low at 0.88994
- Swing area going back to early September also near 0.8899
When technical levels all line up in confluence, that gives traders an opportunity to lean, as risk be defined and limited. That is what they did and the prices currently trading up at 0.8924.
Having said that, there is overhead resistance between 0.89316 and 0.8947. If the buyers are to take more control they need to get above that area.
So for now buyers and sellers are battling it out between the 2 technical levels as the week draws toward a close. Overall, the fundamental story was more supportive of the Swiss franc this week as a safe haven currency (hence the move lower in the USDCHF pair). However, the story can change.
This article was written by Greg Michalowski at www.forexlive.com. Source