Trades below the 100 hour MA, but above the 200 hour MA
Like other currency pairs today, the trend for the USDCHF has been down in the NY trading session (i.e. dollar selling). However, when the price reached the area where the 200 hour MA (green line in the chart below) and the 50% retracement converged, the selling stalled. The 200 hour MA is at 0.9667. The 50% retracement is at 0.96703. The low stalled at 0.9671.
The price is now back between the 100 and 200 hour MAs, and happy to be there (or so it seems) as it plans the next move.
With the price between the two levels, traders will have a decision to make at some point:
- move back above the 100 hour moving average and continue the upward trend or,
- move below the 200 hour moving average and 50% retracement level and turn the bias back to the downside.
That will be the decision for traders going forward from here. The winner will have their target moving average breached.
Meanwhile, the sellers from above can still be happy, but will need a break of the 200 hour moving average to extend the gains. While the buyers from below against the 50% and the 200 hour MA are looking for that break above the 100 hour MA to give them more confidence that the upside is still the way to go.
The battle is on.
