USDCHF is stretching above and away from the 38.2% of the move down from July high
The USDCHF is stretching above and away from the 38.2% retracement of the move down from the early July high to the early September low. That level comes in at 0.86318. The price action yesterday also held support at the low of a swing area between 0.86078 and 0.8619.Staying above those levels gave the buyers the go-ahead to push to the upside, and we are seeing that momentum in the early US session. It would take a move below those levels to hurt the bullish bias at least in the short term.On the top side, the next major target comes in at the dual technical level defined by:The 50% midpoint of the move down from the July high at 0.87116The 100 day moving average at the same 0.87116 level. Fundamentally, CPI and PPI data came in lower than expectations giving the SNB the room to continue to cut rates ahead which is supportive of the USDCHF. Of course, it takes two to tango in a currency pair. However, if US economic growth remains solid, that would also help support the currency pair as well.Nevertheless, it is important to understand your risk-defining levels from a technical perspective as the story can change. Right now, close support comes in at 0.86078. Stay above that level and there's room to roam on the topside This article was written by Greg Michalowski at www.forexlive.com.
The USDCHF is stretching above and away from the 38.2% retracement of the move down from the early July high to the early September low. That level comes in at 0.86318. The price action yesterday also held support at the low of a swing area between 0.86078 and 0.8619.
Staying above those levels gave the buyers the go-ahead to push to the upside, and we are seeing that momentum in the early US session. It would take a move below those levels to hurt the bullish bias at least in the short term.
On the top side, the next major target comes in at the dual technical level defined by:
- The 50% midpoint of the move down from the July high at 0.87116
- The 100 day moving average at the same 0.87116 level.
Fundamentally, CPI and PPI data came in lower than expectations giving the SNB the room to continue to cut rates ahead which is supportive of the USDCHF.
Of course, it takes two to tango in a currency pair. However, if US economic growth remains solid, that would also help support the currency pair as well.
Nevertheless, it is important to understand your risk-defining levels from a technical perspective as the story can change. Right now, close support comes in at 0.86078. Stay above that level and there's room to roam on the topside This article was written by Greg Michalowski at www.forexlive.com.
