The USDCHF is making a run and break to the downside. In the process, the pair is cracking through it's 200 day moving average at 0.91773. The pair yesterday broke back above that moving average after falling below on Monday's trade.
Looking at the hourly chart, the pair started the week on Monday by testing its 100 hour moving average (blue line in the chart above) and found sellers leaning ahead of that level.
The subsequent move to the downside saw the pair move to and through the 200 day moving average on its way to a low of 0.9150. Yesterday, a new low was made in the first hour of trading down to 0.9149, and later at 0.91507, but could not sustain momentum, and the price started the run back to the upside.
That move higher saw the pair move back above its 200 day moving average and also its 100 hour moving average, 100 day moving average, but stalled near its 200 hour moving average (green line).
Today, after up and down price action in the Asian session, and a final run toward its 200 hour moving average that stalled ahead of that level, sellers returned and have now pushed the price lower. The 100 day MA at 0.9208, the 100 hour moving average at 0.91939, and the 100 day moving average at 0.91773 have all been broken. The low price just reached 0.9170, the bottom of a swing area and has seen some stall near that level. The current price trades back at 0.9180 just above the 200 day moving average.
Going forward, with the break traders will now look for increased mometum to the downside. If the price can stay below 0.9181, that would be the best case scenario in the short term for sellers looking for more downside price action. The next targets will look toward the lows from Monday and Tuesday near 0.9148 to 0.9151.
