Technical Analysis

The USDCHF tests 200 hour MA

The USDCHF is down testing the 200 hour MA

The USDCHF has extended to a new session low and in the process is dipping below the rising 200 hour moving average at 0.93619. The low-priced has just reached 0.93584.

The last time the USDCHF price traded below its 200 day moving average was back on February 21 when the 200 hour moving average was at 0.9228. Over the next 4 1/2 days, the price moved up 200 pips to a high of 0.94284 reached on February 27.

Since then, the price has been waffling up and down with a low near 0.93406 and highs near 0.9440 (reached just yesterday). The high price yesterday got within about six pips of the falling 100 day moving average at 0.9346 (at the time). Sellers leaned against the key daily moving average. The price started to rotate back to the downside.

The dollar selling today, help by lower yields and a rising stock market, has also helped to push the USDCHF lower.

Now traders will decide if they want to move further below the 200 hour moving average and look to test the floor area near 0.9340 to 0.9348.

Alternatively if buyers lean against the moving average, getting back above 0.9369 is the first hurdle that would give the dip buyer some short-term satisfaction. Staying above that area and a move back toward the 100 hour moving average and swing area between 0.9387 and 0.9393 cannot be ruled out over time.

Of course as we head into the close, this area would be a natural level for shorts heading into the weekend, to take some profit..

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