USDCHF moves above converged 100 and 200 hour MAs and rockets higher

Earlier today, I posted:

USDCHF: The USDCHF held resistance at the 100-hour moving average yesterday (blue line on the chart below), and held support against its 200 hour moving average.

Today in the early Asian hours, the price broke below the 200-hour moving average and continued down toward the next target at the 200-day moving average at 0.88199. Support buyers leaned against that moving average and the price bounced back higher finding resistance against its 200 hour moving average which is now near the converged 100-hour moving year at 0.8845.

The price has moved back lower.

The 200-day MA is key support at 0.88199. The 100 and 200-hour MAs is key resistance at 0.8845 area. Move below or above those levels should see more momentum in the direction of the break.

The price low in the US session found support buyers ahead of the 200-day MA and started a move higher. The breaking of the converged 100 and 200 hour MAs at 0.8845 did turn sellers to buyers. The price has pushed higher and has reached a new high for the day at 0.8870.

With the break, the bias shifts to the upside once again. The next target is at a swing area starting at 0.8880 and extending up to 0.8998 (call it 0.8900). The high price last week reached 0.8917 which is near highs from July at 0.8920 to 0.8923. Get above all those levels opens the door for more upside momentum in the pair.

This article was written by Greg Michalowski at www.forexlive.com.