Topside trend line
The USDCHF tumbled below the support floor area between 0.9060 and 0.90684 off the initial headlines from Fed’s Powell. That move failed however and sellers turned buyers.
The run back to the upside – helped by rising yields – has pushed the pair back toward the highs for the week. Those highs come between 0.9120 and 0.9127. Also cutting across that area is a downward sloping trendline connecting the August 12 to the August 20 high prices near 0.9127. It will take a break above that level to increase the bias and tilt more to the upside.
On the downside, should be able to say that the 100 hour moving average at 0.9098 down to the 200 hour moving average at 0.90868 should be support. However as the market decides which way the next move is an trades in a up and down trading range, those moving averages become less important and the extreme levels (see yellow areas) become more important for traders. Nevertheless looking for support against the moving average could give some clues for a more bullish bias. So keep that area in mind.
