The USDCHF traded to the low for the week on Monday, testing both the May 15 low and the 100-day moving average, where dip buyers stepped in despite a brief break below the MA. That technical level once again proved to be a key barometer for traders.
The high for the week came on Tuesday and Wednesday, with the rally extending up to test the 50% retracement level at 0.7901. Sellers leaned against that resistance area, reinforcing the importance of both the 100-day MA on the downside and the 50% midpoint on the topside as defining technical boundaries for the pair.
As the week comes to a close, the pair is moving back to the downside as investors seek the relative safety of the CHF heading into the weekend. The price has once again pushed below the 100-day MA near 0.7840, but like the declines seen on May 15 and May 18, downside momentum has slowed after the break. The low price reached 0.7839 — just below the moving average — suggesting sellers are pressing, but have not yet been able to generate sustained downside momentum below the key support level.
For sellers to gain more control, they need to stay below the 100-day MA and build momentum beneath it. If they cannot do that, and the price rebounds back above the 200-hour moving average at 0.7853, the bias could shift back to the upside with traders targeting a retracement of this week’s decline.
Much may result on the developments in the Middle East. Like all weekends, the market are susceptible to the weekend news headlines..
PS. President Trump said he is expected to miss Donald Trump Jr.’s wedding this weekend because of ongoing tensions involving Iran and other government matters. He said it was “not good timing” to leave Washington during an important period for the country.
The wedding to Bettina Anderson is reportedly a small private ceremony in the Bahamas.
For what it is worth.
