Retracing the earlier gains
The USDCHF has moved back into the area defined by the 100 and 200 hour MAs at 0.98576 to 0.98671 area.
That is a big reversal from the high for the day at 0.9917. That high fell short of the high for the week set on Tuesday at 0.9928, which also happens to be where the key 100 day MA is currently located. So early sellers against key resistance started the unravel of the gains today.
The corrective move lower is not only testing the 200 hour MA (green line) at 0.98573, but also the 50% retracement of the week's move higher. A move below would be more bearish as we head into the weekend.
Overall this week, the 200 hour MA was a point of action.
- On Wednesday, the break below sent the price tumbling lower
- On Thursday, the corrective move initially stalled against the MA
- Also on Thursday, the price moved above the MA line and raced higher
- Today near the open, the price tested the MA line
- We are now retesting that line.
So the pattern is plain. Bullish above/bearish below.
