The USDCHF bounced off trend line lows. Back above 200 day MA

Technical Analysis

Author: Greg Michalowski | usdchf

The trend line has been solid.  Breaks above the 200 day MA has not been trustworthy

The USDCHF continues the up and down trading action seen this week. The pair is approaching swing highs from the week (with the highest high at 0.99649 - other highs just off that level).  

The trend line has been solid.  Breaks above the 200 day MA has not been trustworthy_

The price is currently back above its 200 day moving average at 0.9951. That should be bullish, but as you can see from the 4 hour chart, the price has been above and below that moving average line on a number of occasions this week.  Nevertheless, moving above is still a tilt more in the upward/bullish direction.

What has been solid technically is the lower trend line that rooted back in early August. The low today stalled against that trend line level and bounced higher. Buyers were leaning against the risk defining level.

Traders looking for more upside, will now be looking for a move above the 0.99649 level with momentum on the break.

Staying above the 200 day moving average, still remains a technical tilt and the bullish direction.  A move below will disappoint the buyers.

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