USDCHF completes the down and up lap

The  USDCHF  just traded up to 0.9799. In the process, the pair completed the down and up “lap” that saw the price move from a high of 0.97936 to a low of 0.97197, and all the way back up to the 0.9799 level – above the previous high.

Earlier today, the way to the downside, the low price tested and broke below its 100 hour moving average for the first time since another brief break on April 21. The price also looked like it might close lower for the first time in eight trading days.

However, momentum could not be sustained, the price moved back above the high price from last week at 0.97577 (see the warning from the earlier post today).

From that post I wrote:

“If the price can then move back above the swing high from last week at 0.97577, that would scare the shorts/sellers today with the 0.9800 level as the next major target to the upside.”

Guess what?

The USDCHF price could not stay below the 0.97577 level and the price move up to 0.9800.

The USDCHF is now higher on the day (above 0.9776). A close higher would be the ninth consecutive day to the upside and 15th of the last 16 trading days.

Looking at the daily chart below, the price is also back testing the swing area between 0.97836 and 0.9801. Those levels represent the high prices from April and May 2020. A move above would open the door for further upside momentum from a technical perspective.