Can the USDCHF's correction stay below the old floor?
Trending higher after failed break lower, but moving toward an old floor
The USDCHF has been marching higher after an early day break below a lower trend line on the 4-hour chart failed. That failure, turned sellers into buyers (profit taking/new buying). The move has taken the price back toward an old floor in the 0.97878-954 area (see yellow area). The 38.2% of the move down from the high last week is also in that area at 0.97931.
That old floor is key for the near term. Yesterday the break was made and the price ran. Today we get the retest. Do the sellers from yesterday, make the old floor, the new ceiling?
Risk can be defined and limited at the level. Look for sellers to lean against the area (some profit taking from the run higher), but with a short leash (stops above). It is one of those levels that help define the bias.