The USDCHF experienced a significant decline on Friday, following the release of the US jobs report. This downward movement was particularly noteworthy as it resulted in the breach of key moving averages, including the 200-day moving average, which stands at 0.9002, and the 100-bar moving average on the 4-hour chart, currently situated at 0.8997.
The downside momentum persisted today, with the price reaching a low of 0.89528. This brought it very close, within approximately 5 pips, of a significant level within the price chart, characterized by a swing area spanning from 0.89316 to 0.89472. These levels are indicated by the red number circles on the chart below. A breach below this area would intensify the bearish sentiment among traders and lead them to set their sights on the 100-day moving average, located at 0.88988.
On the flip side, as long as the two key moving averages, namely the 200-day MA and the 100-bar MA on the 4-hour chart, continue to act as resistance levels, it is likely that sellers will retain control over the USDCHF in both the short and medium-term.
Chris
Head Trader
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