After test of the 12 day low, the USDCHF squeezes back higher
The USDCHF opened the day near the close from Friday after the sharp decline. The pair moved down to test the August 17 low near 0.9099. The low price reached 0.91007 just short of that low. The inability to extend lower, ultimately sent the price back above it’s broken 100 day moving average at 0.91125, and that started a squeeze back to the upside.
Since then, the price has moved back above its 100 hour moving average at 0.91452 and 200 hour moving average at 0.91531 (blue and green lines). In doing so, it tilted the bias more to the upside.
That is nothing new over the last 12 or so trading days where the price action has seen the pair move down, and back up, and back down, and back up, and back down, and now back up again.
The high over that time period has reached 0.9206 and the low just below 0.9100 for a fairly narrow trading range of only 106 pips (over 12 days).
The pair is stuck in a range. The move above the moving averages is a tilt to the upside but the price has to stay above that level and work toward breaking out of the range.
The next target area comes in at 0.9185 to 0.91915. Above that and traders will start to look toward the 0.9200 area.
The high for the month extended up to 0.92414 back on August 11. That would be another upside target should the price start to trade more comfortably above 0.9200 level. On August 12 and August 13, the price tried to extend above that high but failed and it started the rotation back to the 0.9100 area.
So buyers more in control with traders looking for the price to stay above the 200/100 hour moving averages to keep at bullish bias in play.