Sunday , 24 November 2024
Home Forex The USDCHF is lower keeping the seller in control. The 200D MA is a key downside target.
Forex

The USDCHF is lower keeping the seller in control. The 200D MA is a key downside target.

The USDCHF rebounded earlier this week in the process extended above the 38.2% retracement of the move down from the May high to the June low. The level came in at 0.8986. However, momentum cannot be sustained in the price started rotation to the downside helped by the weaker CPI on Wednesday.

The low for the week extended below its 200 day moving average of 0.88968. Last week that moving average was also broken but each break failed. The one on Wednesday also failed.

After rebounding on Wednesday into the close and trading higher on Thursday into the New York session, sellers returned pushing the price down to a floor near 0.89318. That floor was ultimately broken today. The current price trades near 0.8909.

So sellers are more control. The price is below a cluster moving averages including the:

  • 200 hour moving average 0.8939
  • 100-day moving average 0.89535
  • 100-hour moving average also at 0.89535

All those levels would need to be broken on the top side to shift the bias back in the buyers favor at least in the short term. Absent that, and the 200 day moving average at 0.88968 is the key focus for sellers. Get and stay below that level, opens the door for more selling.

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

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

ECB Villeroy says falling inflation allows the Bank to lower interest rates

Villeroy heads up the Bank of France. He spoke with Ouest-France newspaper,...

CCI Histogram Volume MT5 Indicator

The world of financial markets can feel like a whirlwind of charts,...

Global Market Weekly Recap: November 18 – 22, 2024

Global markets rallied despite heightened Russia-Ukraine tensions, with gold and oil gaining...

FX Weekly Recap: November 18 – 22, 2024

Major currencies saw wild swings as Russia-Ukraine tensions escalated. Safe havens rallied...