The USDCHF moved higher in the Asian and European session, and the process moved closer to the 100 day moving average at 0.91243. The high price reached 0.91191, 5 pips short of that key upside target (and bias barometer). Sellers leaned. The weaker ISM nonmanufacturing data set the price tumbling to the downside. Sellers against the 100 day moving average were rewarded.
The move lower has now taken the price back below its rising 100 and 200 hour moving averages (blue and green lines in the chart above). The 100 hour moving average comes in at 0.90824. The 200 hour moving average comes at 0.90644.. Falling below those moving average levels tilts the bias more to the downside. Stay below is more bearish.
Admittedly, the price moved below the 200 hour moving average on 2 separate occasions last week (and back on May 22). The sellers had their shots. They missed.
Can this current break keep the negative bias intact?
That is what sellers will be now hoping for. The next target comes in at 38.2% retracement at 0.90408. Below that, and a swing area between 0.90255 and 0.90358 would be allied. The 50% midpoint of the move up from the May low comes in at 0.9008.
