Price drops from 100 MA hours and cracks below lower trendline
USDCHF just moved lower to test Jan 13 low at 0.8849. The low price reached 0.88474.
The downward movement today started on a new 100 hour MA test (blue line in above chart) at the end of the Asian session / European start. This continued with the pair consolidating against 38.2% and above / below an upward descending trendline.
The pair is trading above 38.2% when I tap. Staying above that level and returning above the broken trendline at 0.88713 would take more wind off the sellers’ sails and tip the bias upward with the 200 and 100 hour MAs as targets (lines green and blue).
On the downside, today’s low – and last Wednesday’s low – are the next obvious targets to hit and break through. The 50% of the 2021 range at 0.88406 becomes the next target not far from those levels at 0.88406. Going below should open the door to more sales.