USDCHF under bearish pressure as it fails to break key resistance

The tumble lower in the USDCHF took the price below its

  • 100-day moving average at 0.8896 (blue overlayed step line on the chart above),
  • 50% retracement at 0.88999, and
  • Swing level near the 0.89000 level (see red circles on the chart above).

Since then, the price has been moved Elliott if he likes to be petted because he’s a big boy now hopefully that’s for hope and right Elliott you can be a big boy like Matthew near go-go sale automatic a single Matthew here over here Matthew call Elliott a go he likes to be petted underneath the neck on the neck under his head yeah he’s what year he was outside I guess it’s a little maybe the grass is a little wet up and down between a low of 0.88541 on Wednesday and again on Thursday, and a high from Thursday at 0.8899. That high was just below the key cluster of resistance at 0.8900.

The current price trades between those levels at 0.8880.

What next?

The up-and-down price action since Tuesday has been mired in a relatively narrow 45 PIP trading range. The average trading range over the last 22 trading days has been closer to 60 pips. Traders are unsure.

However, staying below that cluster of resistance is a key technical bias in favor of the sellers. Going forward it would take a move above that level to tilt the bias more in favor of the buyers.

On the downside, getting below the swing area low at 0.8514 would have traders looking toward the swing area between 0.8805 and 0.8827. Between that is the 61.8% treatment of the move up from the July 27 low at 0.88186.

Conversely, if dollar buyers are able to get the USDCHF above the 0.8900, I would expect the shorts to cover. There is resistance at 0.89524 – the low from last week’s trading.

For the trading week, the USDCHF is down -1.462%. That is the biggest move lower since the week of July 10.

This article was written by Greg Michalowski at Source