The USDCHF – like other pairs today – have seen down and up price action. The down in this pair coming into the US session saw the pair stall the fall at a random level. Helping to reverse was the S&P Global data, but often times there is a technical reason as well. Not today.
On the top side however, the move back to the upside has moved back into a ceiling area that stalled the rallies going back to April. At ceiling area comes between 0.9146 and 0.9156. That ceiling area stalled the rise yesterday and is doing it again today.
As a result, both buyers and sellers should be interested in this area as a new bias defining trade area. Moving above would open the door for further upside momentum (similar to what happened in the end of April). Conversely staying below (traders can lean against the area with a stop on a break above), would have traders looking back to the downside.
So although on the surface, the buyers seem control, there is work to do. Alternatively, sellers could continue to do what they did in April and early this week and sell against resistance hoping for a rotation back to the downside.
This article was written by Greg Michalowski at www.forexlive.com. Source