USDCHF corrects to the 50% midpoint of the move higher (but below the 200 hour MA)

Technical Analysis

Author: Greg Michalowski | usdchf

The pair is at a neutral area ahead of the FOMC decision

The USDCHF has fallen sharply over the last three trading days with most of the declines happening on Monday and Tuesday (see hourly chart below).

The pair is at a neutral area ahead of the FOMC decision
The run to the downside saw the price move back below its 100 hour moving average (blue line) currently at 0.9270. Yesterday, the price tested its 200 hour moving average, but found support buyers near that level. The price 100 higher in the Asian session today, but resumed the move to the downside in the European session. The price fell below its 200 hour moving average (green line currently at 0.92356) and has stayed below that moving average over the last 10 or so trading hours.

Having said that, the move to the downside has seen support buyers near the 50% of the range since the August 30 low (which was a double bottom with the August 17 low). That 50% retracement comes in at 0.92158. The low price came in at 0.92154 and 0.92155 (two lows today).

With the 200 hour moving average above and the 50% midpoint below, the close risk/bias levels have been defined technically. A break in either direction will be eyed for continued momentum in the direction of that break. 

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