The USDCHF pushed to a new session high in the US morning trade, reaching up to test the falling 100-hour moving average, which currently sits at 0.79602. Sellers leaned against that level on the first touch — the first retest since the pair broke below the 100-hour MA on November 6 — and the price is now trading roughly 5 pips below it.
For buyers to build further momentum, the pair must break and hold above the 100-hour MA, with additional confirmation coming from a move above the 38.2% retracement of the decline from the November high at 0.79715.
On the downside, if sellers continue to defend the 100-hour MA, initial support sits near 0.7941. A break below that level would open the door toward a swing area between 0.79237 and 0.79283, where buyers have previously leaned.
Resistance
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0.79602 — 100-hour moving average
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0.79715 — 38.2% retracement of the decline from the November high
Support
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0.7941 — First support level
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0.79237–0.79283 — Swing-area support zone
This article was written by Greg Michalowski at investinglive.com.