GBPUSD and USDCHF both move back toward converged moving averages

Technical Analysis

Both the GBPUSD and USDCHF moved in the strong dollar direction after the US jobs report, but both have retraced back to near converged 100/200 hour moving averages. However, traders leaned against the converge moving averages and have pushed the prices back away.

Looking at the GBPUSD, the 100 and 200 hour moving averages come at 1.2575 area. The high price just reached 1.2572. The current price is back down at 1.2539 after the successful hold against the moving average level.

For the USDCHF, it spike up to a high of 0.9642 soon after the report, but has since retraced back down to a low of 0.95993. It near converged 100 and 200 hour moving averages are at 0.9599. The price has bounced back up to 0.9619.

Price action can be volatile on US employment day. The move higher in the dollar against both GBP and  CHF  reached target levels. For the  GBPUSD  , the price briefly dipped below support at 1.2524, but could not sustain momentum. For the USDCHF, it rose above the highs from yesterday at 0.96373 but quickly reversed back down toward the moving averages.

Nevertheless, staying below the moving averages on the GBPUSD, and above the moving averages on the USDCHF keep the bias in the favor of the USD in the short term at least.

Articles You May Like

Gold Technical Analysis – The correction looks to be over for now
Is META stock a Buy or Sell?
ForexLive European FX news wrap: Dollar ramps higher as post-election run continues
The EURUSD starts the new day with the bears still in control
PBOC sets USDCNY midpoint at 7.1992 vs est 7.2482 (Previous 7.1966)