100 day moving average at 0.98785
The USDCHF is down testing its 100 day moving average at 0.98785. The pair move below that moving average level last Thursday on a few occasions, but could not sustain the momentum. As I type, we are dipping below the level once again. The bias is getting weaker on the break, but traders will be alert for a failed break.
What might be worrisome for shorts looking for more downside momentum?
Not only watch a move back above the 100 day moving average, but look for a rotation above the 0.9883 level. The level was the swing low from last Wednesday's trade and also a swing low from Friday's trade.
If traders start to see a rotation back above that level after this break, it could sour the momentum to the downside.
On the downside, the swing lows from last week came in at 0.9869 and 0.9870. Moves below that level will look toward the early November lows at 0.9859 and 0.98493.
