The USDCHF is “making a break for it” in trading today. More specifically, the market is breaking below and away from its 200 day moving out at 0.8896. It is also breaking below and away from it 38.2% retracement of the move up from the December low May high. That retracement level comes in at 0.8883. Both those levels have been holding support in June.
The price is now testing a swing area on the daily chart between 0.8819 and 0.8838. Move below that level in the 50% of the same move to the upside would be targeted at 0.8777.
The technicals are taking control, but flight to safety of the CHF is a fundamental attraction as EU elections give investors some cause for pause.
This article was written by Greg Michalowski at www.forexlive.com. Source