Yesterday, the USDCHF moved above its 100 hour moving average, eight 200 hour moving average, and its 100 bar moving average on the four hour chart. All those breaks help the pair move up toward the 38.2% retracement of the move down from the mid August high. That level came in at 0.85172.
Initially, sellers leaned against that level, but by the end of the day the ey price moved above that level and in the Asian and European session today, the price lows did find support buyers against that retracement level at 0.85172.
That floor today, is defining the risk for buyers looking for more upside. Stay above 0.85172 and the price can continue its upward probing.
Also significant today is the price moving above a down sloping trendline. That level comes around 0.8542 currently.
Now there are targets on the upside that would need to be broken to increase the bullish bias including the:
- The 50% retracement of the same move lower at 0.85616, and the
- Falling 200 bar moving average on a four hour chart at 0.85731. The last time the price traded above that moving average was back on July 16. That is a long time ago.
This article was written by Greg Michalowski at www.forexlive.com.
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