The USDCHF moved lower off of a spike high after the US jobs report on Friday. The price backed off into the close and move lower in trading yesterday.
That move took the price to the high of the “Red Box” (see chart below) that confined the pair going back to August 20. Support buyers stalled the fall near the high of that box, but the rally was limited.
In the Asian Pacific session today, the price broke back into the Red Box area (below 0.8358). That was bearish, but the rising 100-hour moving average came to the rescue of the buyers and held support (blue line on the chart below). The price started a run back to the upside.
Going forward, the 100-hour moving average and “Red box” remain key support. Staying above keeps the buyers more control after the up-and-down breakout on Friday. On the topside, the high price from Friday at 0.8607 is the next target, by the 38.2% retracement of the move down from the July high near 0.8631. Ultimately the price needs to get above that 38.2% retracement to show that the buyers can take back more control after the trend like move lower in 2024.
This article was written by Greg Michalowski at www.forexlive.com.
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