The USDCHF is currently trading higher, reaching a new weekly high during the last hour of trading. Earlier this week, the price dipped below the 50% retracement level of the move down from the November high at 0.8000 but was unable to maintain momentum below that point. Sellers had an opportunity but ultimately failed to push the price lower.
The recent upward movement, seen yesterday and continuing today, was supported by improved Michigan Consumer Sentiment data. This helped the price climb back above the 100-hour moving average (MA) at 0.80376, shifting the bias in favour of further gains as the week concludes.
Looking ahead, as long as the price remains above the 200-hour MA, the bullish bias is expected to hold. Traders can watch for a target area above the swing high between 0.80666 and 0.8076. Staying above this range could open the door for a push towards the November highs.
Conversely, a decline below the 200-hour MA followed by a break beneath the 100-hour MA at 0.8024 would signal a shift back towards the downside for USDCHF.
Original Source: Greg Michalowski of investinglive.com
