The USDCHF remains locked in a broader range that has contained most of the price action between 0.8029 and 0.8151. There have been brief moves outside those extremes, but neither buyers nor sellers have been able to generate enough momentum to establish a sustained break.
Near the middle of that range sit two important technical levels: the 100-hour moving average at 0.8107 and the 200-hour moving average at 0.8101. In trading today, the price has remained above both moving averages, with the session low reaching 0.8113 before buyers stepped back in and pushed the pair higher.
On the topside, the rebound carried USDCHF into a swing area between 0.8138 and 0.8151, with today’s high reaching 0.8145. That keeps the pair below the upper end of the broader range and leaves buyers with more work to do.
So, for now, the technical battle lines are well defined. The 100- and 200-hour moving averages provide close support, while the 0.8138-0.8151 swing area provides close resistance.
Ultimately, if buyers are going to take firmer control, they need to get and stay above 0.8151. A sustained break above that level would strengthen the bullish bias and have traders looking toward the July swing highs near 0.8206.
Conversely, a move back below the 100- and 200-hour moving averages at 0.8107 and 0.8101 would tilt the short-term bias back to the downside. That would put the 0.8060-0.8070 swing area back in play, followed by the lower end of the broader range near 0.8030.
For now, the bias remains modestly in favor of the buyers because the price continues to hold above the key hourly moving averages. However, a break above 0.8151 is still needed to give the buyers greater control and open the door toward 0.8206.
This article was written by Greg Michalowski at investinglive.com.