The technical story remains the same for the USDCHF as it remains between support and resistance between 0.8400 and 0.8537. In between sits a cluster of moving averages. Those moving averages come between 0.8466 and 0.8475. The current price is trading near the low of those moving averages after breaking above those moving averages earlier in the day.
Can the buyers keep control?
If the price moves back below, the sellers would assume more control from a technical perspective.
Conversely if the price can bottom right here and rotate back above the 0.8475 level, traders would start to look toward the high of a swing area near 0.8500 and more importantly the 38.2% retracement of the move down from the mid-August high and the falling 200 bar moving average on a 4-hour chart. Both of those levels come in at 0.85172 increasing the levels importance from a technical perspective. Move above that at the 0.8537 would be eyed.
This article was written by Greg Michalowski at www.forexlive.com.