The USDCHF has been trading higher since September 30, and after breaking outside of the “Red Box” on October 4. The price moved up to a swing area and then above the 38.2% retracement during last week’s trading. On Monday this week, the price corrected down to retest the 38.2% retracement at 0.86318 and found support buyers.
That was good news technically for the buyers, and the price did move higher extending above the high prices from last week at 0.8668 in the process. However, the high price today fell short of its 100 day target at 0.86959 (only reaching 0.8685). The prices currently trading above and below that 0.8668 level. I wouldn”t say the break was met with enthusiasm.
In fact, it seems the market is running out of steam in what has been an up-and-down advance higher. Yes, the price moves higher but then it rotates back to the downside. If the price were to break with more momentum the low 0.8668 we should be on her way to revisit the 38.2% retracement at 0.86318. Move below that level and buyers turn to sellers on the disappointment.
This article was written by Greg Michalowski at www.forexlive.com.
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