In the earlier post and video on the USDCHF, I spoke to the battle going on between the double tops a 0.8012 and the swing area between 0.79778 and 0.7989. The price did hold support near the high of the swing area – keeping the buyers in control.
In the prior post, I wrote:
- A break above 0.8012 would open the door toward the next target near 0.8041, which includes the January 15 high and a topside channel trendline
On the downside:
- A move back below 0.7978 would shift focus toward 0.7957, followed by the 200-day MA at 0.7945
- A break below that cluster would give sellers more confidence and force buyers to reassess
Bottom line:
The bias remains bullish while above 0.7978, but buyers need to get through 0.8012 to extend the trend. Failure to do so risks a corrective pullback.
The price higher moved up to 0.8042 but found willing sellers against that my from mid-January and also the topside channel trendline. Sellers against that level seen the price move back down toward the 0.8000 level.
What next?
The sellers against the high target are in play in hoping for the storyline to take the price back below the low of the swing area between 0.79778 and 0.7989. If that can be done, more momentum toward the 200 hour moving average at 0.79449 cannot be ruled out.
For the buyers, the aforementioned swing area does remain a level to lean against the stop on a break below.
