Earlier today, the dollar selling took the USDCHF to and through the 100/200 hour MAs which were near converged at the 0.9040 area. That shift back below the MAs, disappointed the buyers from yesterday, and shifted the bias back to the downside.
After retesting the MAs, the price moved to a new low for the day at 0.9012. That was short of the low floor that has confined the pair over the last 10 or so trading days between 0.89985 and 0.90056.
The subsequent push back higher, has seen the price return to the 100 and 200-hour moving images. Once again traders will need to decide which way the next shift will take the pair.
On a move back above, traders will look toward the downward-sloping trendline from the last few days of trading. That MA cuts across at 0.9061 (and moving lower), swing highs at 0.9064, 0.9071, and 0.9075, and the high price from April at 0.90949. Conversely, staying below the moving averages will have traders looking back down toward the upward-sloping trendline and the swing area/100 bar MA on the 4-hour chart above and below 0.9000.
At some point, the less than 100 pip trading range over the last two weeks will be broken (below 0.8998 or above 0.9095). Until then, the 100 and 200-hour moving averages will act as mid-range bias-defining levels.
This article was written by Greg Michalowski at www.forexlive.com. Source