The USDCHF is trading up to a high price of 0.92005. In the current hourly bar, that high tested a key swing area and the 50% retracement of the pair's trading range since the December 15 high at 0.91976.
Looking at the hourly chart, there have been a number of swing highs between 0.9198 and 0.92013 going back to December 24 (see red numbered circles). That ceiling has stalled a number of rallies. If the buyers are to take more control, getting above that level is paramount for a more bullish technical bias. A break higher would look toward the 100 day moving average at 0.92105 which would also be needed to be broken if the buyers are to take more control.
Absent that, and high definition, the ceiling remains in place.
Although there is a strong ceiling which can have bearish significance, since the December 31 low, the swing lows have been progressively higher.
There is a trendline that currently cuts across near 0.91612. That is also a level where both the 100 and 200 hour moving averages have converged. Just above that is the 200 day moving average at 0.91669.
Earlier in the US session, the price moved down to test that level only to find buyers looming against it. Risk could be defined and risk could be limited. The buyers leaned.
So although there is a hard ceiling up to 0.9201, there is also strong support against the 200 day moving average, the 100 and 200 hour moving averages, and the rising trend line.
Buyers and sellers are battling. The price is currently near the high, so buyers are making the stronger play, but so far the sellers are holding off the charge.
