.... But quickly reverses
For the 3rd day in a row, the USDCHF squeaked out a new low going back to January 2015. The low on Thursday came in at 0.88513. The low on Friday reached 0.88504. The low today bested the Friday low by reaching 0.88493. So the last two days has seen the pair fall to new lows but only by a pip before rebounding.
The move back to the upside has now taken the price back above a swing low area between 0.88704 and 0.88749 (see green numbered circles and yellow area). The price is also approaching the 100 hour moving average at 0.88818.
If the lows failed, the breaks above the 100 hour moving average have also not been all that successful. The pair has moved above the 100 hour moving average on Wednesday, Thursday (for a brief moment) and again on Friday. Today, the Asian session saw the price trade above the moving average only to fall back.
Nevertheless a move above the 100 hour moving average would still tilt the bias a little more to the upside with the falling 200 hour moving average at 0.89012 as another falling target level. The price has not closed above its 200 hour moving average since November 25.
Helping to reverse declines other than the technical moves, are higher yields, lower gold, higher stocks leading to less flow into the safety of the CHF. Traders are being reluctant to move lower but they also need to that the price back above moving average levels if they are serious about a further corrective probe to the upside.
