USDCHF making a new high
The EURUSD is making a new session low and gets closer to the August low at 1.10478. A move below will next look to the August 1 low at 1.10263.
Looking at the daily chart above, below that level, traders will target 1.1000 as a natural support level. That level followed by a lower trend line at 1.0969 (and moving lower).
Drilling to the hourly chart below, the pair had a snap back rally on the earlier comments from ECB’s Knot (ECB’s Knot says there is no need to resume QE program… WTFrig?). That sent the price to the 200 hour MA where sellers entered. We are back below the 1.1063-658. That is now close risk for shorts.
Meanwhile, the USDCHF is reaching to new highs and looks toward its August 23 high at 0.98767 level. It is water under the bridge now, but the pair bottomed yesterday and today near the 100 and 200 hour MAs (blue and green lines). Staying above was a bulllish clue (see chart below) and it led to the upward steps in trading today.