Reversal of the technical moves yesterday.
The USDCHF fell sharply yesterday. The fall started after testing its 100 hour moving average (blue line in the chart below), falling through the 200 hour moving average (green line) and the 50% retracement (at 0.9820) as well.
The low price stalled near swing lows from August 27, 28 and 29 and near the 61.8% retracement at 0.9795. That was a key test (see post from yesterday outlining the key support level). The market held. The price started to rebound.
Today, we are seeing reversal of the price action yesterday.
The 50% retracement was rebroken to the upside this time. The 200 hour moving average (green line) initially held. After the 50% midpoint was retested, the price broke above the 200 hour moving average and returned right back to the 100 hour moving average and stalled.
That is the exact mirror of the move lower yesterday.
We currently trade between the 100 hour moving average above at 0.98739 and the 200 hour moving average below at 0.9847. Those are the bias/risk defining levels now.
A move above the 100 hour moving average (and staying above) would swing the bias more to the upside. Conversely a move back below its 200 hour moving average (and staying below) would swing the bias more to the downside.
Some of these days are just like another… Today the USDCHF followed the path from yesterday only in reverse.