Trend line stops the rally also at the level.
Earlier we saw the EURUSD tumble lower but stop right at the 200 hour MA
The USDCHF has found the same resistance against it's 200 hour MA. The pair also had resistance against a downward sloping trend line.
Why do the levels hold?
Because traders can define and limit their risk against the MA levels, and lots of traders see it/use it. If lots of traders see it/use it, there tends be a crowd where they sit. The crowd can either push it away or push it through. Hence the limited risk. If you risk a little, you stand to make more than a little if "the market" agrees with you.
Since retail traders can not move the price one pip (try it, I bet you can't ), the best we can do is trade where others are likely to gather (i.e. the Big Boys or "the market"). If "the market"/Big Boys agree, we can turn to them and say "thank you Big Boy for moving the price in our favor".
The "market" does not always behave so nicely. Time of day, range for the day, fundamental events, liquidity issues can give cause for pause. Today, however, the USDCHF was up a pretty good way, the trend line and the MA were on top of each other. So traders who were long, exited. Traders looking to sell the rally, now have great trade location with little risk.
