The USDCHF corrected higher in the Asian Pacific session after falling below the natural support at the 0.8000 level yesterday. The corrective move higher saw the pair move up to test the 200 bar MA on the 4-hour chart at 0.7995 – just short of the 0.8000 level – and fell from that level. Sellers leaned. That kept the sellers more in control.
In the video yesterday, I spoke how the price needed to stay below that 0.8000 level to keep the sellers in control (see post here).
The rotation lower in the European morning session, saw the price move to a new low going back to October 29, and in the process test the 61.8% of the move up from the September low. That level comes in at 0.7941. The low for the day reache 0.7942 just above that level.
In between the 61.8% and the 200 bar MA/0.8000 level is the 50% midpoint at 0.79758. The current price is at 0.7956.
Sellers are in control and stepping from target to target, but the 61.8% target held, giving dip buyers some hope and a technical level to lean against. .
This article was written by Greg Michalowski at investinglive.com.
