USD/CHF Technical Analysis: Key levels to watch in current market dynamics

In the above video, I speak to the technicals that are driving the USDCHF in trading today. Below is a summary of those technicals.

Market Overview

The USD/CHF begins the day with a relatively narrow 21-pip trading range, significantly below its average monthly range of 53 pips (39% of normal). This subdued volatility makes it the least volatile major pair.

Yesterday’s Price Action

The pair briefly broke above last week’s high at 0.8668 but failed to reach the 100-day Moving Average (MA) at 0.86934 (intraday high: 0.86854). The price retreated, falling below 0.8668.

Current Market Dynamics

The current price is 0.8661.

Key Levels to Watch:

• Close resistance: 0.86684.That is the high ceiling from last week that failed on the break yesterday. Get above that ant the 100 day MA willbe targeted at 0.8693

• Support: 0.86318 (last week’s low and 38.2% retracement of July’s downtrend). Move below that level and a swing area at 0.8607 to 0.8619 and the rising 100 hour MA will be targeted (currently at 0.8602 and moving higher).

Market Implications

Buyers’ initial attempt to break higher failed. To remain relevant, they must:

1. Reclaim 0.86684

2. Hold 0.86318 on any dip

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