Swing area on the topside and 200 hour MA on the downside
The USDCHF has moved higher in trading today, and in the process moved up to test the high from yesterday at 0.95501. The high price today reached 0.95541 (just 4 pips above that high). The price has rotated a little lower. That move has dipped back below the 50% of the move down from the Feb 20 high at 0.95113 as stock gains have eroded a bit. However, the dip is not been that great so far.
Looking at the 5 minute chart below, the correction lower has retraced about 38.2% of the move up today (see chart below). It is indicative of a modest decline, but the fall - although modest, is a bit "V" like (albeit modest so far).
On the downside today, at the low today, the 200 hour MA based the pair today (green line in the hourly chart at the top of the page). Going forward, that MA will be a bias defining level for the bulls and bears.
So the limit extremes are set:
- The 0.95328 to 0.9554 area is topside resistance
- The 200 hour MA at 0.9423 is support.
In between for intraday traders, watch the retracement levels. A move below the 50% of the day's range, tilts the bias more to the downside.
