The USDCHF broke below its 200-hour moving average at 0.80427 after sellers held resistance against the 0.8060–0.8070 swing area. The break triggered additional selling, but the decline found support at another familiar technical level: the rising 100-hour moving average, currently at 0.80291.
That mirrors yesterday’s price action. The pair also bottomed against the 100-hour moving average early in that session, prompting a rebound above the 200-hour moving average and a retest of the 0.8060–0.8070 swing area. The key difference is that the rising 100-hour moving average has moved higher—from around 0.8006 yesterday to 0.8029 today.
What’s next technically?
With the price trading between the 200-hour moving average at 0.80427 and the 100-hour moving average at 0.80291, buyers and sellers are battling between those two levels for control of the next move.
A break above the 200-hour moving average would give buyers more control and shift the focus back toward the 0.8060–0.8070 swing area. Conversely, a break below the 100-hour moving average would tilt the short-term bias more firmly in the sellers’ favor, with the next downside target at the 0.8006–0.8017 swing area.
Below that, additional support comes at the 50% midpoint of the advance from the early-June low at 0.8000, followed by the 100-day moving average at 0.7978.
For now, the two hourly moving averages define the battle lines. Traders will be looking for momentum in the direction of the next break.
This article was written by Greg Michalowski at investinglive.com.