Tumble from Friday, continuing today.
Last week, the USDCHF moved above it's 100 day MA and stayed above it until Friday. On Friday, the price tumbled below that MA line and moved toward the 200 hour MA (currently at 0.99879). The pair closed above the parity level.
Today, the price decline has continued. The move lower has taken the price below that 200 hour MA, the 50% retracement and is currently testing the 200 day MA at 0.99597. Below that MA is the 61.8% and the underside of a broken trend line (see red circles) at 0.99485.
The bias is lower/bearish, but the area between the 0.9948-597 should be a tough nut to crack with the technical support levels lining up. Adding to the potential stall is that the range for the day is 61 pips. The 22 day average is 63 pips (about a month of trading). If the dollar falls apart, the level will be busted. But if traders think, the dollar is down, it has gone enough, this is the level that risk can be defined and limited.
The dip buyers will look toward the 200 hour MA at 0.9988 (near lows from Friday too) as the upside test. Get above and the bearish waters get more muddy. Stay below and the dip buyers get more concerned.
