USD selling pushes the USDCHF lower but the 100/200 hour MA is stalling the fall

USD selling has pushed the USDCHF below a swing area between 0.8880 and 0.8992 (call it 0.8900). That comes after a sharp rise in Friday which took the price above technical target.

The fall below the swing area is given sellers some comfort after the sharp rise of seen over the last seven or so trading weeks. On the downside, the 200 day moving average lows as a potential target. Recall from last week, the price based against that level before moving higher on Thursday and Friday.

Before that 200-day moving average, however, sits the converged 100 and 200-hour moving averages currently at 0.88624. The low price today has moved down to test that level (the low price has reached 0.88629).

Getting below those two hourly moving averages and staying below would open the door for a retest of the 200-day moving average. Conversely, holding and the battle is on between 0.8900 on the topside and 0.8862 on the downside.

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