USDCHF trades higher with help from yields | Forexlive

Yesterday, the USDCHF moved to the lowest level since January 2021 after breaking below the double bottom from this month at 0.8859. That’s a good news. The bad news is the price could only extend to 0.8851 before rotating back to the upside.Failed break (see chart above).

The price rebound yesterday moved toward the 100 hour moving average and closed just above that moving average level (blue line in the chart above).

In the Asian session today, the price waffled up and down in a narrow trading range above and below the 100 hour moving average (currently at 0.8905). In the European session buyers started to take more control and push the price toward a downward sloping trend line and the 200 hour moving average both near 0.89338.

In the early US session, stronger initial jobless claims and higher core PCE data from the US GDP has a markets worried about inflationary pressures. US yields are higher with the two-year now up 13 basis points and the 10 year yield up 8.3 basis points.. That has pushed the USDCHF away from it 200 hour moving average (at 0.89339) .

The high price extended to 0.89753 before settling. The correction off the high has moved down toward a swing area between 0.8953 and 0.8959. That area is a short-term support target. Stay above is the best case scenario for the buyers in the short term. More conservative risk would be the 200 hour moving average.

On the top side, the 38.2% retracement of the move down from the March 28 hi comes in at 0.89928. There is a swing area between that level and 0.9001.

Buyers are making a play in the short term. The failed break to new lows yesterday started the process. The move above the 100 hour moving average and 200 hour moving average has continued the progression.

The swing area down to 0.8953 is now support. The 38.2% retracement at 0.8953 and the 0.9000 area is the next upside targets.