It is a similar story in a number of currency pairs vs the USD, but the USDCHF is breaking away from its near converged 100/200 hour MAs (blue and green lines).
Higher yields are helping the greenback move higher. The 10 year yield is up around 5.6 basis points. The 30 year yield is up 6.4 basis points.
The price for the pair initially moved lower into the early European session, but bottomed ahead of the low from yesterday and a swing area between 0.9186 and 0.9190.
The price moved above the 100/200 hour moving averages at 0.9222 to 0.9226 in the early New York session and has seen some increase momentum over the last hour or so.
The price has now moved above the 38.2% retracement of the move down from the November 25 high at 0.92398. The high price from yesterday at 0.92495 and the high of a swing area between that level and 0.92557 is the next upside target area. The 50% midpoint of the same trading range is up at 0.9265.
Get above those levels and it opens up the door for a run toward the high from December 7 at 0.92746. That level was broken during the FOMC trading day with the price running up to 0.9292, but that break was quickly reversed.
Overall, buyers are taking back more control above the moving averages. Those buyers would not want to see the price move back below the moving averages.
With lots of ups and downs during the month of December, traders have to play the breaks, and then the targets. Get above a target, and the bias in the direction of the break continues...until it doesn't. Because of the up and down nature, failures can lead to reversals in the opposite direction. So be aware.
