July 30, 2024 at 05:59PM
The USDCHF stretched higher yesterday to start the trading week, and in doing so moved toward the key 200-day MA/38.2% of the move up from the December 2023 low. Those levels came in near 0.8879 to 0.8883 respectively. The high price reached 0.8867 today (close but still a safe distance from the 200-day MA). Staying below kept the sellers in play.
The subsequent move lower is now taking the price back toward an old floor area near 0.8818 – 0.8825 (see red number circles and yellow area on the chart below).
Moving below that level would have traders looking down toward the 50% midpoint of the move up from the December 2023 low at 0.8777.
Recall from last week the low price tumbled down toward that level and found willing buyers on the first look. Holding it, gave sellers the go-ahead to take profit and the buyers the go-ahead to stick a toe in the water near the key technical target.
Now after the bounce, the sellers seem to be back in control with work-to-do near 0.8820 and then the 50% midpoint.
This article was written by Greg Michalowski at www.forexlive.com.
