USDCHF traded to its lowest level of the week on Monday, testing the May 15 low and the 100 day moving averageas buyers intervened on the decline despite a short breakout below the moving average. This technical level once again proved to be a key metric for traders.
The highest level for this week came on Tuesday and Wednesday, with the rise extending to test the level The 50% retracement level is at 0.7901. Sellers anchored on that resistance area, reinforcing the importance of both the 100-day moving average on the downside and the 50% midpoint on the upside for identifying technical limits for the pair.
As the week comes to a close, the pair is returning to a bearish trend as investors look for the relative safety of the Swiss franc ahead of the weekend. The price fell back below the level The 100-day moving average is near 0.7840But like the declines we saw on May 15-18, the downward momentum slowed after the break. The low price reached 0.7839 – just below the moving average – indicating that sellers are putting pressure, but have not yet been able to generate sustained downside momentum below the key support level.
For sellers to gain more control, they must stay below the 100-day EMA and build momentum below it. If they are unable to do so, the price bounces back above The 200 hour moving average is at 0.7853This bias may once again shift to the upside with traders targeting a correction to this week’s decline.
This may result in many developments in the Middle East. Like all weekends, the market is vulnerable to weekend news headlines.
NOTE: President Trump said he is expected to miss Donald Trump Jr.’s wedding this weekend due to ongoing tensions related to Iran and other government matters. He said that leaving Washington during an important period for the country was “not appropriate.”
Bettina Anderson’s wedding is said to be a small, private ceremony in the Bahamas.
For what it’s worth.
