It's tough out there.
The USDCHF experienced a significant drop during the early European trading session, falling below its 100-hour moving average (currently at 0.89398). This was reminiscent of last Friday's behavior when the price also dipped below this average, only to bounce back swiftly in the subsequent hour.
However, today's recovery took approximately 4-5 hours. The price surged back above the 100-hour moving average, triggered by increased buying interest as U.S. rates rose and the overall dollar value rebounded during the U.S. session.
The highest price reached was 0.89612, just shy of the late Asian and early European session high of 0.8962. Should the price reach new highs, traders will likely set their sights on a swing area between 0.8972 and 0.89769. Yesterday's highest price peaked at 0.8987.
On the flip side, the early Asian session low came in at approximately 0.8947. To reestablish a bearish bias in the short term, yesterday's low of 0.8942, the early Asian session low, and the rising 100-hour moving average at 0.8939 would all need to be breached.
Factors contributing to the dollar's uptick include more hawkish Fed talk, debt ceiling concerns, and satisfactory data. The 2-year yield has risen by 6.3 basis points to 4.067%, and the 10-year yield is up by 4.7 basis points to 3.554%.
However, traders should note that navigating such volatile swings can be challenging, requiring a mix of luck and willingness to adapt when predictions miss the mark. Given the market's uncertainty, it might be wise to remain flexible or even consider sitting out until clearer direction or fundamental clarity emerges. Trading conditions remain tough.
