To start the new trading week, the buyers are holding onto control, but for the EURCHF, the sellers are holding the stronger hand (and in control).
USDCHF: Last week, the USDCHF moved above its 38.2% retracement of the move down from the July high to the September low at 0.86318. Midweek, the price tested that moving average but bounced higher. In trading today, the price has moved down to retest that retracement level but has so far found willing buyers. If the price can stay above that retracement level, a rotation back toward the high prices from last week near 0.8670 would be targeted, followed by the 100-day moving average and 0.8700. Conversely, a move below the 38.2% retracement would have traders targeting a swing area between 0.86078 and 0.8619.
EURCHF: For the EURCHF, the price on Thursday last week bounced off a trend line and retracement level near 0.9352. The subsequent move higher on Friday saw the pair retesting the 100 and 200-bar moving averages on the 4- hour chart above and below 0.9400. In trading today, the high price in the Asian session stalled right near the 0.94013 level (200 bar moving average only four hour chart), and moved lower. That kept the sellers in control. On the downside, the rising trendline cuts across at 0.9358. Below that the 61.8% retracement of the range since October comes in at 0.93512.
This article was written by Greg Michalowski at www.forexlive.com.
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