The USDCHF moved up to test the high from Monday today after a V-like day yesterday saw the price move down below a swing area support between 0.9858 and 0.9873 fail and lead to a run back to the upside.
That upside momentum continued in trading today with the price moving up to the high price from Monday at 0.99647. The high price today reached 0.99652 just above that Monday high.
The inability to extend higher - and a shove lower from the volatility in the UK markets - helped to send investor flows into the relative safety of the Swiss franc (lower USDCHF).
That momentum has now taken the price below the aforementioned swing area (see red numbered circles and yellow area in the chart above) and also back below its 100 hour moving average (blue line) currently at 0.98617.
Falling below that moving average line and swing area gave the sellers more ammunition to push lower and the pair is currently down testing the 0.9800 level.
What next?
The 50% retracement of the move up from the September 22 low is the next target (the price tested the 200 hour moving average on that day and started the rally to the upside). That retracement level comes in at 0.97912. Move below that level, and traders will be looking toward the aforementioned 200 hour moving average at 0.97588. The 200 hour moving average is also between a swing area from 0.9754 to 0.97638.
Hold support against the 50% retracement level and traders will be battling with the broken 38.2% retracement 0.9832 in the 100 hour moving average at 0.98617 has the upside resistance targets.
Sellers are making a play today with price action breaking some support levels, with other levels on the horizon to get to and through.
