On Wednesday, the USD/CHF pair returned above its 100-hour moving average, and although the price corrected lower in yesterday’s Asian session and early European session, the bearish momentum found willing buyers near this moving average level.
The subsequent rally on the back of yesterday’s rally in US stocks (and the disintegration of flight-to-safety flows in the pair) pushed the price towards the 38.2% retracement of the move down from the July high to the August low at 0.86683. The next 200-hour moving average (green line) was also in play.
Sellers relied on those technical levels yesterday and today.
With the price currently trading at 0.8641, it remains below the resistance at the 38.2% retracement level at 0.8668, but above the 100-hour moving average at 0.8585.
Ultimately, it would take a break of either of these levels to increase the bullish or bearish bias, but given the sharp move lower since the July high, and the inability to reach and hold above the 38.2% retracement, sellers still have the advantage.
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