USDCHF breaks to new highs

Technical Analysis

Author: Greg Michalowski | usdchf

Moves above the swing area and looks toward February high

Moves above the swing area and looks toward February high
The USDCHF moved above the high from yesterday reversing the declines seen yesterday. 

Recall from an earlier post, the pair has been playing games with the 100 day MA at 0.89854 over the last 2 trading days. Yesterday the price moved above the moving average line and spiked up to the high of 0.90229, but then tumbled back below the key line.

Today, the price move back above that moving average line and once again moved higher. After some consolidation in the North American morning session saw the price retest last weeks high at 0.8995 and find support buyers there (and stayed above its 100 day moving average), the buyers have reentered and push the price higher over the last 2 hours (see earlier post).

The next target comes in at the February high at 0.90450. Getting above that level will take the price to the highest level since December 1. The next target would be the downward sloping trendline at 0.9082 from the daily chart below.

If sellers are found against the February high, watch for the 0.90182 to 0.90229 for short term clues (yellow area from the hourly chart above).  Stay above keeps the push to new highs in play. Move below and a reversal back toward the 100 day MA may be in the cards. 

The buyers are making a play.  Can they take it to the next levels?

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