The USDCHF moved higher into the US session with the 0.89318 as a target followed by the 100 and 200 hour MAs (blue and green lines near 0.8939). The 0.89318 was defined by the swing lows from Thursday last week and Asian Session lows on Friday.
That level was tested today on the move higher in the early US session, but stalled right at the swing level. THe last 5-6 hours has seen a run back to the downside and is approaching the 200 day MA at 0.88966. That MA has been breached a number of times going back to early June with limited success before the price bounced back higher (see red shaded areas on the chart above).
Although there is a number of risks on the break of the 200 day MA it remains a key barometer for both buyers and sellers. Move below would increase a bearish bias. Traders would need to extend below the low price from June 7 at 0.88806 to help confirm sellers are more in control. Conversely, hold support against the level and the battle continues between the swing area above at 0.89318, in the 200 day below and 0.88966
This article was written by Greg Michalowski at www.forexlive.com.
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