USDCHF makes a break for it. What next?

The USDCHF is making a break for it.

The break comes on the move above the swing area high and 0.9156. The last 15 or so trading days has been able to stay below that level in between there was a flash out back toward the 38.2% retracement of the longer-term move down from the 2022 high as 0.9025, but now was quickly reversed (see daily chart above).

There’s a key target area on the daily chart comes in at 0.92395. That little represents the 50% midpoint as well as swing highs going back to October 3 in October 4 between 0.9232 in 0.9244 (brackets in the 50% midpoint).

Looking at the hourly chart below, the price earlier today moved up to test the high of the swing area only to rotate back down toward the 100-hour moving average. Buyers leaned against that moving average before pushing to the upside and through the high ceiling area at 0.9256. Bullish.

Going forward, it would take a move back below the high ceiling area between 0.9146 and 0.9156 to disappoint the buyers, and give the sellers some comfort (and more control on the failed break).

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