The USDCHF is moving to new US session highs (still down on the day), and in the process is moving closer to its falling 100 and 200 hour moving average is near 0.89585. The price is currently trading at 0.8955.
Earlier today, the price tested the higher 200-hour moving average only to reverse and go lower. The low price for the day stalled ahead of the low price from last week at 0.8905. The low price today reached 0.8911 before starting its to move back to the upside.
A move back above the converge moving averages – and staying above – would tilt the bias in the short term to the upside with hopes for additional corrective momentum. The high for the day at 0.89678 would be the next target. Get above that then traders start to look toward the 38.2% retracement of the move down from the May 31 high. That mobile comes at 0.8995 (just below the natural resistance at 0.9000).
This article was written by Greg Michalowski at www.forexlive.com. Source