Dip buyers lean against the hourly MAs
The USDCHF moved to the highest level since August 13 yesterday and in the process entered into the high swing extremes reached from August 10 to August 13. That area comes between 0.92317 and 0.92414 (see red numbered circles and upper yellow area). The high price yesterday reached 0.9234 – within that range – and backed off.
Today, the the price continued its move to the downside falling back below the August 19 high at 0.92057 and ultimately reached between the 200 hour moving average at 0.91632 and the 100 hour moving average at 0.91726 (see green and blue lines in the chart above and lowest yellow area).
The price rebounded off that support, and is currently near a another swing area between 0.91846 and 0.91919 (see green numbered circles).
Overall, resistance sellers leaned against the upper extreme yesterday. In trading today the dip buyers came in against the moving average support level. That makes sense from a technical perspective.
The price currently trades between those extremes and near where other swing resistance levels line up.
With support last holding against the moving averages, the buyers are trying to make the next play. However, the swings can go either way between the wider extremes, and what remains more up and down type trading going back to early August.