The USDCHF was able to move above the down sloping trend line and the 100 hour MA (blue line in the chart above) in overnight trading. The subsequent move higher, however, found sellers at the 200 hour MA (green line at the 0.9090 level currently). When the price trades between these two moving averages, I call the situation trading between the goal posts.
When this happens it suggests the market is hesitant to change the trend to the upside – just yet at least. The market can in fact move the price back and forth between the MA levels until it gets the piece of news or event that pushes the pair higher or lower. In the meantime, traders can use the levels as support and resistance to lean against (risk is defined) and look for a break to show momentum.
On the downside, a break of the 100 hour MA at the 0.90556 level should solicit a move back below the broken trendline at the 0.9045 level (and then look to test the double bottom at the 0.90148 level). On the topside, a break of the 0.9090 level, will next target the 0.9136 level which is the 38.2% and is near the weeks high at the 0.9135.