Ran out of upside momentum
The USDCHF is following the dollars momentum lower. The pair is trading at new session lows as I type. .
Technically, the pair:
- Failed after making a new high going back to December 5th. The high took out the Monday high by only 2 pips. That was a disappointment for the buyers
- Broke below a trend line connecting recent lows
- Fell below its 100 hour MA (blue line). That MA is now at 0.9960. That was the low from yesterday as well.
The next target on the houlry chart will look toward the swing low from January 18 at 0.99308. The 200 hour MA comes in at 0.9910 and will be another target below.
Sellers showed there hand on the failure and then the break below the 100 hour MA. Risk is now the 100 our MA at 0.9960. Look for sellers to lean against that level and hope for more dollar selling after the run higher in January.
The USD is now lower vs. all the major currencies with the exception of the JPY.
