The USDCHF is being helped by weaker Swiss retail sales/higher US yields. However the ISM data in the US did come out weaker than expectations with prices and employment components also lower.
That combination helped to push price down toward an old floor level (broken earlier today), and the 200 bar moving average on the 4-hour chart at 0.89974 level. Buyers leaned against that level on the dip and have pushed back to the upside.
Having said that, the high price today has seen sellers near the 50% of the move down from the May 1 high at 0.9025.
With support at 0.8997, and resistance at 0.9025, the buyers and sellers will now battle it out for more control. With the price higher on the day (and the low also basing at its 100 day moving average today at 0.8980), and the price moving back above the old floor, the buyers have the short term tilt. However, there is work to do to prove their desire to push higher in the pair.
This article was written by Greg Michalowski at www.forexlive.com.
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