The story remains the same for the USDCHF as the “Red Box” resistance target stalls rise.

If you have been reading or watching my videos, I have been harping on the up-and-down trading range in the USDCHF with 0.83996 as the floor and 0.85368 as the ceiling. Today, the price moved higher after weaker CPI data in Switzerland. The price high reached up to your .85371 just above the upside target and sellers entered and have pushed the price back lower.

What next?

There is a swing area support at 0.8488 ahead of the start of a cluster of moving averages at 0.8481. So far the low of the swing area is holding support. On the top side, the 38.2% retracement of the move down from the August high comes in at 0.85166. That level was a ceiling over the last few weeks of trading before today’s failed break to the upside. Get back above the 38.2% retracement and perhaps we see another one for the high of the Red Box. Conversely, stay below and the bear may try to take back more control.

This article was written by Greg Michalowski at www.forexlive.com.