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The USDCHF keeps it bullish bias, but the EURCHF moves lower. What next for each?

USDCHF: The USDCHF moved lower from earlier highs but found support buyer near the 38.2% of the move down from the July high at 0.86318. The inability to move and stay below that level increases the levels importance going forward technically. If that level hold, the buyers remain in control. If the price moves below it, I would expect the buyers turning to sellers in the short term.

Topside target at the 100 day MA and the 50% near 0.8711 now.

On the downside, move below 0.8631 would have traders eyeing 0.8607 and move below that level , and I would expect buyers giving up and turning to sellers on the failed breaks.

EURCHF:The EURCHF has been testing/breaking above the 100/200 bar MA on the 4 hour chart this week, but each break has found sellers soon after the break (see blue and green lines on the chart below). The move lower in the European and after the ECB rate cut, has now taken the price to a key trend line and the 61.8% of the trading range since August at 0.9351-59 area. Getting and staying below that level is more bearish. Stay keeps the buyers in play but with the sellers still more in control below the higher MAs.

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

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