USDCHF Retests 100/200 Hour MAs
Earlier today, dollar selling took USDCHF towards and through the 100/200 hourly MAs which were almost converging towards the 0.9040 area. This return below the MAs disappointed yesterday’s buyers and brought the bias back to the downside.
After retesting the MAs, price reached a new low for the day at 0.9012. This was below the low that has confined the pair over the past 10 trading days between 0.89985 and 0.90056.
The subsequent upward surge saw the price return to the 100 and 200 hour animated frames. Once again, traders will have to decide which direction the next move will take the pair.
Coming back above, traders will look towards the descending trendline from the last few trading days. This MA sits at 0.9061 (and going down), highs at 0.9064, 0.9071, and 0.9075, and April’s price high at 0.90949. Conversely, staying below the moving averages will cause traders to look towards the ascending trendline and swing zone/100 bar MA on the 4-hour chart above and below 0.9000.
At some point, the trading range below 100 pips over the past two weeks will be broken (below 0.8998 or above 0.9095). Until then, the 100 and 200 hour moving averages will act as median bias levels.
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