USD/CHF rebounded earlier this week in the process extending above the 38.2% retracement of the downward move from the May high to the June low. The level came at 0.8986. However, the momentum could not be maintained as the price began to rotate towards the downside supported by the weaker CPI on Wednesday.
The week's low extended below the 200-day moving average at 0.88968. Last week this moving average was also broken but each break failed. It also failed on Wednesday.
After bouncing on Wednesday at the close and trading higher on Thursday in the New York session, sellers returned to push the price down to a floor near 0.89318. This floor was finally broken today. The current price is trading near 0.8909.
So sellers became more in control. The price is below the cluster moving averages including:
- The 200 hour moving average is 0.8939
- The 100-day moving average is 0.89535
- The 100 hour moving average is also located at 0.89535
All of these levels need to be broken to the upside to shift the bias back in favor of buyers at least in the short term. In the absence of that, the 200 day EMA at 0.88968 is the main focus for sellers. Reaching this level and staying below it opens the door to further selling.
USD/CHF fell with the 200-day moving average still a key lower target