August 09, 2024 at 02:38PM
On Wednesday, the USDCHF moved back above its 100-hour moving average and although the price corrected lower into yesterday’s Asian and early European session, the downside momentum found willing buyers near that moving average level.
The subsequent rise on the back of higher US stocks yesterday (and the unwinding of the flight to safety flows in the pair), pushed the price toward the 38.2% retracement of the move down from the July high to the August low at 0.86683. The following 200 hour moving average (green line) was also in play.
Sellers leaned against those technical levels both yesterday and today.
With the price currently trading at 0.8641, it remains below the resistance at the 38.2% retracement at 0.8668, but above the rising 100 hour moving average of 0.8585.
Ultimately, it would need a break of either of those levels to increase the bullish or bearish bias, but given the sharp move lower since the July high, and the inability to get and stay above the 38.2% retracement, the sellers still have the advantage.
This article was written by Greg Michalowski at www.forexlive.com.
