The USDCHF moved higher in the Asian session on the buying after the weekend assassination attempt. However, after testing a cluster of moving averages, buyers turned to sellers and has now pushed the price all the way down to new session lows, has breached below the 50% midpoint of the move up from the June low. That level comes in at 0.8938.
I would expect the 50% midpoint to be the barometer for both buyers and sellers.. Trading above is more bullets. Trading below is more bearish.
On the downside, the low from last Thursday after the US CPI data found support buyers just ahead of the 61.8% retracement at 0.89116. That level was also a low going back to June 25. Should seller push below the 50%, then moving below that level would increase the bearish bias going forward today, and for the trading week.
This article was written by Greg Michalowski at www.forexlive.com.
