The USDCHF extended higher after the better than expected retail sales. The move higher took the pair above a number of MAs including the 200 bar moving ever done a 4-hour chart at 0.8956, the 100-day moving average 0.8962, and the 200-hour MA at 0.8970. What the pair could not get through was the highest of the cluster of MAs at the 100 bar MA on the 4-hour chart at 0.89778.
That MA needs to be broken to increase the bullish bias. If done, the 100 day MA at 0.89986 (call it 0.9000) would be targeted.
On the downside, the buyers will be watching the other moving averages for support. A move below 0.89564 (the 200 bar MA on the 4-hour chart) would hurt the buyers and likely lead buyers to turn to sellers on the disappointment.
This article was written by Greg Michalowski at www.forexlive.com.
