The swing highs going back to August stall the run higher today
Back on August 10 to August 13,the USDCHF stalled within a range of 0.92317 and 0.92414. The inability to move higher saw the pair rotate sharply to the downside bottoming on August 17 just two days later at 0.90991. Since that low, there has been a another test of that area on August 30. On the topside most of the price action was below a swing area between 0.9199 and 0.92057.
Last week, that swing area was broken on Wednesday but fell back below on Thursday.
Today after bottoming on Friday and moving higher, the price action has seen a sharp move to the upside helped by a basing against its rising 100 hour moving average (blue line) currently at 0.91892. The sharp rise in the London session saw the price move right back up toward the swing highs going back to August. The high price today reached 0.92402 just below the highest high from those swing highs at 0.92414. The price is currently trading at 0.92186.
What now?.
With the ceiling top in place, the dynamic could see the sellers now leaning against that area between 0.92317 and 0.92414, with stops on a break above. Risk is defined and limited against the area. On the downside traders will be eyeing the 0.9199 to 0.92057 for support. If it can hold, the buyers are still more in control.
