A cluster of MAs in the USDCHF are putting the stall on the USDCHF rally

Technical Analysis

The  100/200 hour MA, the 200 day MA and the 38.2% are clustered together and stopped the rally

The USDCHF moved higher on the back of a reversal of any flight to safety flows into the CHF (PS the link between CHF and risk off/on can be squirrely, so be aware).  The run higher, however, did approach a formidable resistance area defined by a cluster of moving averages with a retracement level thrown in for good measure.

Looking at the hourly chart above, the 

  • 100 day moving average (overlayed) comes in at 0.9950 (it is the green flat line partially hidden)
  • 100 hour moving average at 0.99516
  • 200 hour moving average at 0.99543, and the 
  • 38.2% retracement of 0.99568

The high price for the day reached up to 0.9954 and the price has since reversed back lower and looks toward the 50% bid point at 0.9935.  Longs will be hoping for support against that level if the buyers are to stay in control.

US stock markets are set to open in a couple minutes.  If the move higher can be maintained and advance even higher, the pair may be able to crack the upside cluster of resistance.  

If, however, the market rise stalls, the pair is likely to drift back lower. 


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