USDCHF returns to 50% midpoint after test of 100 day MA stalled the rally

The USDCHF midpoint of the February range is 0.89577

The USDCHF moved up to test the 100 day MA yesterday, and today was able to extend above that key MA. That break only lasted for a brief moment. The price started to move back down as buyers turned to sellers on the failed break.  

The USDCHF midpoint of the February range is 0.89577

That fall has now taken the price to the 50% midpoint of the February range at 0.89577.  Yesterday, that level was a stall point on the way higher (before breaking higher).  Today, the level held support.

What now?

The correction off the low took the price up to retest the 61.8% at 0.89783 and stalled. 

As a result, the pair has found an intraday support and resistance level off the retracement levels.  A break below the 50% will likely lead to more downward selling. A move above the 61.8% will have traders looking again toward the key 100 day MA.  

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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