USDCHF breaks above swing area. Can the momentum from the break continue? | Forexlive

The USDCHF has had its share of ups and downs in trading today. The initial move in the Asian session was to the downside, but support buyers near the 100 hour moving average (blue line in chart above) stalled the fall, and the price rotated back higher in the early European session.

The high price off of that bounce stalled within a swing area between 0.9278 and 0.9290 where sellers returned. The move back down saw the pair’s price retest the rising 100 hour moving average (blue line in the chart above).

The bounce off the 100 hour moving average this time, extended above the swing area high at 0.92904. The momentum above the swing area took the price to a new high of 0.93038.

What now?

Given the up and down swings in the US dollar today (not just this currency pair but others) anything is possible. However, technically traders who are playing the break to the upside will now be looking for support within the 0.9278 – 0.9290 area. Moving back below that area would certainly disappoint and likely lead to more selling. Conversely, holding the area will have traders looking toward the high price from last week at 0.93308 as the next key target.