USDCHF chops up and down today. Keeps the bearish bias.

Technical Analysis

Author: Greg Michalowski | usdchf

Consolidates in an old swing area

The USDCHF is chopping up and down within an old swing area between 0.9125 and 0.91409. That is where the low from yesterday also bottomed (at 0.91282). The low today reached 0.9131. The high extended to 0.91688.  The current price is at 0.9142 (more near the low).  


Looking at the 4-hour chart below, the high today stalled ahead of the 50% retracement of the move up from the February low. That level comes in at 0.91714. As mentioned, the high today reached 0.91688 just below that level.  

The sellers remain more control below the 50% retracement level. Getting below the 0.9125 level would have traders looking toward the 0.9100 level where the 61.8% retracement is found and the 200 day moving average is also nearby (at 0.9098). The combination of those technical levels should make that area a tough nut to crack on the first test. Be aware for profit-taking/support buying against the level/area (with stops on a break below).

A move back above the 50% retracement level at 0.91714 would hurt some of the bearish bias, and would have traders looking toward the falling 100 hour moving average (see blue line in the hourly chart below at 0.91934).  

The price high yesterday stalled ahead of that level.  On Friday and Thursday of last week, there were breaks above the moving average level, but could not get close to the 200 hour MA (green line).  Nevertheless should there be a move back above the 100 hour moving average, it would be another tilt, in the buyers direction.  

USDCHF on the hourly chart

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