USDCHF moves lower and tests the 100 bar MA on 4-hour chart.

USDCHF falls to MA support Chart

  • Tuesday, 29/08/2023 | 21:54 GMT+5.5
  • The 100 bar MA on 4-hour chart at 0.8789 is the downside target.

The USDCHF currency pair experienced a decline due to the reversal of the USD’s upward movement, prompted by today’s release of disappointing US economic data. This downward shift led the price to break below a range of fluctuation situated between 0.8805 and 0.8827. Subsequently, the price tested its ascending 100-bar moving average on the 4-hour chart, settling at 0.8789.

During this test, buyers looking for support demonstrated their presence, causing a rebound in the price towards the psychological level of 0.8800.

What next?

Market participants will closely monitor a previous swing area, which now acts as potential upper resistance (indicated by the red numbered circles on the provided chart). Remaining below this threshold maintains the advantage for sellers. Nevertheless, should the price descend beneath the 100-bar moving average and maintain that position, coupled with the breached 38.2% retracement level of 0.87795, it would intensify the bearish outlook.

On the contrary, breaching the level of 0.8705, followed by 0.8727, would instill greater confidence among buyers.

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