Retest its 100 day moving average
The USDCHF fell sharply yesterday and in the process shook the pair out of the up and down choppiness seen over the previous week or so of trading. The pair trended down to a low price at 0.96375 which was the lowest level since May 4. However early Asian session lows could not get below the low price from yesterday and sellers turned to buyers.
The last hour so of trading has seen the price extend further to the upside and the pair is now trading above and below its 38.2% retracement at 0.96838 and its 100 day moving average at the same level (give or take a fraction of a pip).
Above that level looms the 100 hour moving average and 50% retracement at the 0.9698 level.
Key areas to help determine if the selling from yesterday was a shift in bias or simply a trend day to get out of the recent choppiness for the day.
That is what traders will be trying to answer from today's price action has the market traders retest of key moving average/retracement levels. Stay below and the bears remain in control. Move above and the trend yesterday may have simply been a one-day affair.
