Extends above the high from last week after dips to trend line and 100 hour MA this week held
The USDCHF is following the trend higher in the USD today. The pair traded above the high from last week at 0.94172. It did waffle above that area in the London morning/early NY trading, but has run higher over the last few hours.
Helping the upside technically, was the pairs ability to hold a lower trend line and the 100 hour MA yesterday and into the day today (the low today was off wider prices at the open - but the lows yesterday found early buyers against that MA risk defining level).
The pair moved above a topside trend line in the Asian session and it was run time.
For now with the pair extending to a new high, intraday risk focused traders will eye the highs from last week at 0.9417 as close risk. Stay above is more positive for the trend today.
TRADING EDUCATION:
It's what you see and how it speaks to you.
Put yourself back in the chart to when the price was getting close to the 100 hour MA/trend line. Yes... the demons in your trading brain can see that MA broken, and the price going lower - before it even happens. It might even whisper in your head "Sell ahead of the break and get a head start".
However, if you take the view (and listen to the voice) that says the "MA line and trend line represents a risk defining level and as long as it stays above, all is AOK", you would have had great trade location with limited risk.
The icing on the cake was when the price moved above the topside trend line, which led to the big move higher today.
If you look at a chart and it speaks fear ("oh my, the 100 hour MA will be broken"), you will either not do a trade or may even preempt a break (by selling ahead of the 100 hour MA).
Instead if you look at the chart and "hear" it saying "This is a low risk opportunity that you should lean against", you may fall into great trade location that ends up paying off with a big move in the direction of the trade WITH limited risk.
It's what you see, and how it speaks to you. The market WILL talk to you.
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