The USDJPY, GBPUSD and the USDCHF have each seen up and down action today. For the USDJPY and GBPUSD, the price action traded above and below the 100 hour MA. Both also used that MA as either support (for the USDJPY) or resistance (for the GBPUSD).
That helps to increase the MAs importance going forward and can also be used to define the bias and risk for your trading.
For the USDCHF, it has used both the 100 and 200 hour MA as either support or resistance. The 100 hour MA has stalled rallies on 2-separate tests, increasing the levels importance even more going forward.
As a result, going forward pay attention to the 100 hour MA. If broken, the bias will shift. Conversely, if the price remains below the 100 hour MA on the GBPUSD and USDCHF, the bias remains more bearish. For the USDJPY, if the price remains above the 100 hour MA, the bias remains more bullish.
This article was written by Greg Michalowski at www.forexlive.com.
