June 13, 2024 at 04:37PM
Admittedly, the USDCHF is non-trending with up-and-down price action today. There was an extreme reached after the US PPI and claims data with the price extending to a session low of 0.89318.
However, momentum could not be sustained and the price moved higher. The move higher did stay below its rising 100-hour moving average at 0.89609 and has rotated back lower. That move has now taken the price below the 100-day moving average at 0.89498 followed by the 200-hour moving average at 0.89436.
If the price can now stay below the key 100-day moving average, I would tilt the bias more in favor of the seller’s. The hope is that the low price for the day is also taken out at 0.89318. Break to a new low, and the focus will return to the 200-day moving average at 0.88968.
Recall from last week and again yesterday, the price moved below the 200-day moving average, but momentum faded each time (the lowest level got to 0.88806). Getting and staying below that level would ultimately be needed to give the sellers more room to roam.
Conversely, if the price moved back above the 100 day moving average, and then the 100-day moving average and 0.89498 and 0.89609 respectively, focus will be on the 38.2% retracement of the move down from the May high. That level comes in at 0.89864.
This article was written by Greg Michalowski at www.forexlive.com.
