Pair is up nearly 1% on the day
The AUDCHF is the biggest mover on the day. The pair moved up nearly 1% (at the highs) on the day (it is up 0.92% now), and has been trending since bottoming near lows from November and the 0.6700 area. The run higher has pushed all the way up to 0.67681.
Technically, the run to the upside was helped by a break back above its 100 day moving average at 0.67281. Just yesterday that moving average was broken to the downside (it was broken last week as well). That helped to push the price down toward the mid-November lows at 0.6694 and 0.66872. The low today reached to 0.66947.
The run to the upside is also extended above its 100 hour moving average at 0.6743 and 200 hour moving average at 0.67527. Those 2 moving averages are now risk defining levels for longs looking for more upside momentum. Move below each would weaken the technical bias.
On the topside, the pair is running into some resistance against a trendline connecting the highs from last week. That trend line comes in at 0.6767. The high price for today reached up to 0.67681. Sellers are trying to lean against that level after the trend move higher. If the price should move back above the trendline, I would expect sellers to be cautious. Trends tend to go further than traders expect. Look for sellers turned buyers if the price starts to trade more comfortably above that trend line level. The next topside targets would look toward 0.67805 and the 50% retracement of the move down from the November high at 0.67875. The high price from last week peaked at 0.67947. That too will be an upside target on further momentum.
So from being more negative at the start of the day and testing lows, the pair has made a big comeback with the technicals turning around in the process. The question now is "Can that momentum continue?"
Getting above the topside trend line and staying above would be the next hurdle.
