The price of the USDCHF moved lower after the weaker than expected ADP employment report, but found support near a target at 0.84315. The initial jobless claims and the productivity/unit labor costs data reversed the price back to the upside.
Although off the lows, there is work to do for buyers if they want to take back more control. More specifically, getting back above the 200-hour moving average at 0.84719 is needed to increase the bullish bias. That moving average stalled the rallies in the Asian and European sessions before moving lower today.
A move above the 200-hour moving average is Step 1. Step 2 would next target the 100-hour moving average and 0.84949. Getting above both is needed to tilt the short-term bias more in favor of the buyers. Even then, the buyers have work to do as the pair is still new lows for the year.
This article was written by Greg Michalowski at www.forexlive.com.
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