The USDCHF runs up to the 100 bar MA on 4-hour chart and finds willing sellers

The USDCHF moved above the 100 and 200 hour MAs yesterday tilting the short term bias to the upside. The modest upside momentum, took the price up toward the next target – the 100 bar MA on the 4-hour chart (see higher blue line on the chart below). What happened? Sellers leaned against that MA and the price has rotated back to the downside. The move lower fell back to the 100 hour MA (lower blue line).

So the buyers and sellers are battling it out between the 100 hour moving average below at 0.8461, and the 100 bar moving average on the 4-hour chart up at 0.8494.

At some point, there will be a break one way or the other. Traders will look for the momentum in the direction of the break. Right now, the 100 bar moving averages (the two blue lines) are defining the up-and-down range.

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