Bullish move above the 200 day MA was a failure
Last week, the price of the EURCHF extended above the 200 day MA for the first time since January 2014 (not 2015 when the SNB devalued but 2014). That break lasted for 3 or so days. Yesterday, the price took a tumble and today we are seeing a continued fall. Looking at the daily chart, the pair is approaching trend line support at the 1.0710 area. This will be eyed as support.
What is worrisome for the buyers comes in on the hourly chart, The pair today fell below the 50% retracement of the move up from the July 31 low to the high reached on August 12. That level comes in at 1.0745 and this will now be resistance (close risk level for shorts). Stay below and the bears remain in control. Move above and perhaps it is time for some consolidation.
For the time being (i.e. below the 50%), the bears remain in control.
