CHF the weakest currency today
The CHF was the beneficiary of safe haven flows on Friday after the reports of Flynn pleading guilty to falsifying testimony to the FBI. However,the story was less than what the headlines made it out to be (at least initially at least) and as a result, we are seeing the unwind of the trade.
Technically, looking at the hourly chart above, the tumble on Friday stalled right around a lower channel trendline connecting recent lows (see green circled numbers).
Today, the price gapped higher, and has moved further to the upside. The pair is sniffing the near converged 200 and 100 hour MA (green and blue lines in the chart above). Those two moving averages come in at 0.9829 and 0.98324 respectively.
So far sellers have been able to keep the price below - and they may continue to lean on tests going forward. However, if there is a break higher, look for further momentum with 0.98499 (the 38.2% retracement) and the topside trend line at 0.98688 the next targets to the upside.
