The USDCHF reaches 200 day MA target but fails on breaks

Technical Analysis

Two moves below the 200 day MA today both failed

The USDCHF yesterday tried to extended above its 200 hour moving average for the first time since April 5 (higher green line in the chart below). The move above failed, and buyers turned to sellers. The price trended lower.

Today, the Asian and London session lows move below the key 200 day moving average (lower green line and 0.90870).  Each of those two breaks failed with the lowest low coming in at 0.90796.  That’s a problem for the sellers. However, what keeps the sellers in play (and gives them some control) is that on the way to the downside yesterday, the pair fell below a swing area between 0.9121 and 0.9123. The high price today extended to 0.91188. So sellers leaned against that old floor and that keeps a battle going on between the 200 day moving average and that swing area.  Buyers and sellers are both in play.

At some point the price will either break above the old swing floor or break below the 200 day moving average. For now, the traders are battling it out.

Invest in yourself. See our forex education hub.

Articles You May Like

Greenback Eases Ahead of Trump’s Executive Actions, Bitcoin Takes Leads and Hits New Record
Trump floats the idea of universal tariff, says not ready for that yet
US stock indice close higher on the day and have positive returns for the week
Shares of Cartier owner Richemont jump 16% as sales rise in December quarter
EURUSD: What are the technicals telling traders after bouncing off 2022 lows this week

Leave a Reply

Your email address will not be published. Required fields are marked *