The USDCHF continues to trade in a well-defined sideways range, with traders closely monitoring for a breakout in either direction.
On the downside, support is firm at 0.8794–0.87995, marked by a key swing area that has held the recent lows. To the upside, resistance comes in at 0.8838–0.88438, which has capped price advances on three separate occasions (see red numbered circles) .
The consolidation is occurring between the 100-hour moving average (0.88029) the 200-hour moving average (0.8815), and the 200 day MA (at 0.88106) adding technical weight to the range-bound narrative.
A clean break above 0.88438 or below 0.8794—accompanied by momentum—will likely dictate the next directional bias. Until then, range traders are in control, looking to fade the extremes.
Key Technical Levels:
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Resistance zone: 0.8838–0.88438
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Support zone: 0.8794–0.87995
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100-hour MA: 0.88029
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200-hour MA: 0.8815
Keep an eye on momentum on any breakout attempt—this pair is coiled and ready to move.
This article was written by Greg Michalowski at www.forexlive.com.