The momentum from Friday fades, but into support targets
The momentum from the Friday run higher has faded a bit in the USDCHF. Contributing to the decline was the inability of the price to extend above the 38.2% retracement of the move down from the November 29 high at 0.99187 during Friday's run higher. Also weakening the technical picture was today's high stalling in the 0.9908-11 swing area (see red circle 5).
Having said that, the pairs move lower has been limited. The range for the day is only 19 pips (versus 42 pip average over the last month of trading). The pair is also approaching key support against its 100 day moving average at 0.98876 and 100 hour moving average at 0.98837. Stay above keeps the bulls/buyers more in control despite the dip. A move below, however, would likely lead to more selling momentum.
Look for buyers against this moving average support area, with stops below.
