USDCHF falls below its 100 hour MA

Technical Analysis

The USDCHF opened the week below the 100 hour MA (blue line in the chart above). On Tuesday, the price soared higher reaching the 50% of the move down from the November 21 high. That level comes in at 0.93988.

On Wednesday, the price tumbled back down and in the process moved briefly back below the 200 and 100 hour MAs (green and blue lines), but closed above the MA levels.

ON Thursday after falling back below the MAs again, the price once again snapped higher reaching a new high for the week ahead of the jobs report today.

The jobs report and the ISM Non-manufacturing sent the pair tumbling once again. The price is back below the 100 hour MA at 0.9316 and the 200 hour MA at 0.9287. The low reached 0.9271.

So for the week, there were higher lows each successive day (red numbered circles). On Tuesday, the high was the highest going back to December 8th . Then today, the high again made a new high going back to December 8th before the tumble lower.

With the price below the hourly MAs, the sellers hold the “best hand” and control (below 0.92872 is close risk – 200 hour MA). The next targets are the low from yesterday and Wednesday at 0.92597 and 0.92526 respectively. Then traders will look toward the extremes seen over the last month of trading.

What would spoil the fun?

Start by moving above the 200 hour MA and then the 100 hour MA. That would not be a good look for the sellers from a technical perspective.

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