The USDCHF is stretching to the upside as the market continues to unwind the flight to safety flows that helped to push the USDCHF lower in July. The price bottomed last Monday after the Nikkei fell -12.4%, and the S&P and Nasdaq indices moved down -3.0% and 3.4% respectively. The price has been stepping higher since then.
On Thursday and Friday of last week, the price moved up to test the 38.2% retracement of the move down from the July high at 0.8668, and backed off.
Today, the price was able to extend above that 38.2% retracement and is now trading above the 0.87000 level. The next key target comes against the 50% of the same moved lower along with the following 100 bar moving average on the 4-hour chart near 0.8745.
This article was written by Greg Michalowski at www.forexlive.com.
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