Forex technical analysis: USDCHF rallies off swing low level. Tests key MA resistance
The 200 and 100 hour MAs being tested.
The USDCHF bottomed at the last lows from October 4. That was a double bottom at 0.9710 area. The low today reached 0.97109. Call it a triple bottom now. Traders who leaned against the low were rewarded with a move back higher.
Is the low in place?
The rally off the lows has been able to build and work its way toward the next key upside targets. That comes in against the 200 hour MA (green line) at 0.9757 and the 100 hour MA (blue line) at 0.9763. We are currently back up and testing that area as I type (and making new highs in the process), but so far, the sellers are stalling the rally and leaning. Key test. If sellers lean here, expect stops on a break.
A break above those averages would be more bullish for the pair and should see more momentum. Targets include:
- The 0.9769 swing high.
- The 0.9779 swing high from October 3rd .
- The high for the week comes in at 0.9808 (from Monday).
Above that and traders will be eyeing the 200 day MA. That MA stalled the rally last week (green step line at 0.98214).
If resistance holds now, the rising 100 bar MA on the 5-minute chart will be eyed to provide support. That comes in at 0.9739 currently and rising. It should hold support on a retest.