This post was originally published on this site.
In a post yesterday, I highlighted the importance of the USDCHF swing area extending down to 0.8009, along with the rising 100-hour moving average (blue line on the chart below) and the 50% retracement near 0.8000.
The low today reached 0.8007—between those key levels and just above the 100-hour moving average. Buyers leaned against that support cluster and have since pushed the price steadily higher.
The rebound has now taken the USDCHF toward the next key resistance cluster near 0.8050. That area is defined by the falling 200-hour moving average and the broken 38.2% retracement.
Getting and staying above 0.8050 would strengthen the short-term bullish bias and give buyers more control. Conversely, if sellers lean against the resistance cluster, the price could rotate back toward the 100-hour moving average. That moving average remains the key support and risk-defining level for buyers.
For now, the buyers made their play at support and have pushed the price higher. However, they still need to clear the 0.8050 resistance cluster to open the door for additional upside momentum.
This article was written by Greg Michalowski at investinglive.com.
