The USDCHF this week traded to its session high on Wednesday after the FOMC rate decision. That Spike high took the price of a ceiling area between 0.9265 and 0.92746. The high price reached 0.92937 soon after the Feds decision but quickly reversed lower.
During yesterday's trade, the price consolidated up and down trading range above and below its 100 and 200 hour moving averages before rotating to the downside and closing near a swing area between 0.9186 and 0.9190.
In trading today, sellers continue to chopped lower with the price extending briefly below its 200 day moving average at 0.91779 and into a lower swing area between 0.9168 and 0.91774.
The turnaround in the US dollar in the US session along with the help from the technical bounce off the 200 day MA and move back above the 100 day MA, has turned sellers into buyers. More has extended above the 100 and 200 hour moving averages. The price action this week has seen the price move above and below those moving averages on four of the five trading days. The exception was on Wednesday when the price bottom against the levels before moving up to its high for the week.
When the market is consolidating in a sideways up and down pattern, the 100 and 200 hour moving averages move toward the middle of the trading range and also start to converge. Then when traders buy the low extremes and sell the high extremes, the moving averages become intermediate barometers for bullish or bearish. That is what we have seen this week.
So now with the price back above the 100 and 200 hour moving averages, the bias is more bullish with risk back at the moving average levels. The 38.2% retracement at 0.92398 is the next target followed by the swing area between 0.92495 and 0.92557
