Momentum in USDCHF fades
If you look at the daily chart of the USDCHF, the pair had a run high from April to the beginning of May that was trendy. That move took the price above the topside channel trend line. When that happens, the trend is accelerating.
Of course markets can accelerate and then lose speed/momentum. That started to happen after the price failed to extend above the October/November 2017 highs on May 7 to May 10th. Each of those days moved above the 2017 highs and each break failed to solicit momentum.
The pair's trend was slowing down.
On Friday, the price fell back below the broken trend line. Yesterday, the high stalled against the underside of that trend line. Today, the pair move to the lowest level since May 1.
Stay below the 0.9977 on the daily chart keeps the sellers in charge.
On the downside, the 0.9845 is the a target. That was the swing high from January 2018.
Also helping to push the USDCHF lower is the weakness in the EURCHF. Looking at the daily chart below, the price fell below the 100 day MA at 1.17344 yesterday but closed near the level. Today, there has been a bigger push and the pair is currently testing a lower trend likne at 1.16944. A move below will have the 200 day MA as the next hurdle at 1.1645. The price has not been below the 200 day MA since it gapped above it back on April 24, 2017.
The EURCHF stalled in April around the 1.2000 level. Recall back in January 2015 the SNB depegged the EURCHF at 1.2000 and the pair tumbled to below parity (the low is debatable).
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