The USDCHF is once again testing its 200-hour moving average, currently at 0.8217, after failing to sustain a break above the 100-hour moving average at 0.82626. This marks several days of price action being confined between these two technical levels, keeping traders on watch for a decisive move.
The 100-hour MA has repeatedly capped upside attempts, while the 200-hour MA has provided consistent support. This ongoing consolidation reflects a battle between buyers and sellers, with directional bias awaiting a breakout.
A firm move above 0.82626 with momentum would shift the bias more bullishly, opening the door toward the high for the week from Monday to trade at 0.83184 followed by the high from last Friday at 0.8333. The 38.2% retracement of the move down from the April high comes in at 0.83505.
Conversely, a break below 0.8217 increases downside risk, with targets near the low for the weekend 0.8197 (right below 0.8200). Move below that level and the swing area between 0.8097 and 0.81288 is the next major target
Key levels:
-
Resistance: 0.82626 (100-hour MA), 0.8318 (high for the week), 0.8333 (high from last Friday)
-
Support: 0.8217 (200-hour MA), 0.8200 area, 0.8097 – 0.81288 paren swing area
Traders will be watching closely for a shove above or below the respective MAs—with momentum—to determine the next directional leg.
This article was written by Greg Michalowski at www.forexlive.com.
