Buyers run into some technical
The USDCHF marched higher yesterday after basing against its 200 day moving average (overlaid green line on the hourly chart below) on Tuesday and retesting near the level yesterday. The inability to move back below that moving average line gave buyers a go ahead to push higher.
The high price yesterday and into the Asian session, did extend above the Tuesday high but not by much. However, the selling was also modest, and the buyers took the price higher toward the end of the Asian session and into the European morning session. That move took the price up to test a topside trend line near 0.9250. The price briefly extended above that level to 0.92529, but ran out of steam. The the last few hours have seen the price consolidated below the trendline currently at 0.92515 (and moving higher).
It will take a move above that trend line (and stay above) to increase the bullish bias. In the the meantime, there is an area for profit-taking/sellers dipping a toe in the water. Stay below keeps a new sellers engaged, but only if the price can stay below as the buyers remain more in control.
It would take a move back below the lower trend line and swing area near the 0.9200 area to increase the bearish bias. That is the minimum target if the sellers are to take more control from the buyers.
Overall, buyers in control, but sellers have a reason to sell against a topside trend line. Move above trendline and all bets are off for the sellers .
