The USDCHF has moved higher today and in the process, has stretched toward the 38.2% of the move down from the mid-August swing high. That retracement level comes in at 0.8517, and that is where sellers started to lean against of earlier today and on the most recent hourly bar. Getting above that level would open the door for more upside probing with the double top from last week at 0.85358 the next target that needs to be broken to give the buyers more comfort and short-term control.
Absent that, and the move off the low is just a normal correction in what has been more of a downward-sloping trading bias.
Recall last Friday’s low price down to 0.8373 took out the low of the year from the very 1st trading day of the year at 0.8389. The inability to get and stay below that level started the corrective move back to the upside.
This article was written by Greg Michalowski at www.forexlive.com.