The USDCHF is moving higher after stronger-than-expected PPI data showed a 0.9% gain in July. The rally has pushed the price back above the broken 38.2% retracement level at 0.80711—a key area that capped gains in yesterday’s Asian session before the pair rotated lower. Price action is now moving away from the 100- and 200-hour moving averages near 0.8075, and holding above these levels will keep the technical advantage with buyers.
The next upside target is the ceiling from last week’s trading near 0.80893. A break above this resistance would open the door for further bullish momentum. Yesterday’s sharp dollar selloff drove USDCHF below the 50% retracement toward the support zone between 0.8017 and 0.80233, where sellers stalled and the market began to rebound.
With today’s push back above the confluence of technical levels between 0.8071 and 0.80756, buyers have taken control, shifting momentum firmly in their favor.
This article was written by Greg Michalowski at investinglive.com.
