USDCHF under bearish pressure as it fails to break key resistance

<p>The tumble lower in the USDCHF took the price below its </p><ul><li>100-day moving average at 0.8896 (blue overlayed step line on the chart above), </li><li>50% retracement at 0.88999, and </li><li>Swing level near the 0.89000 level (see red circles on the chart above). </li></ul><p>Since then, the price has been moved Elliott if he likes to be petted because he's a big boy now hopefully that's for hope and right Elliott you can be a big boy like Matthew near go-go sale automatic a single Matthew here over here Matthew call Elliott a go he likes to be petted underneath the neck on the neck under his head yeah he's what year he was outside I guess it's a little maybe the grass is a little wet up and down between a low of 0.88541 on Wednesday and again on Thursday, and a high from Thursday at 0.8899. That high was just below the key cluster of resistance at 0.8900. </p><p>The current price trades between those levels at 0.8880.</p><p>What next?</p><p>The up-and-down price action since Tuesday has been mired in a relatively narrow 45 PIP trading range. The average trading range over the last 22 trading days has been closer to 60 pips. Traders are unsure.</p><p>However, staying below that cluster of resistance is a key technical bias in favor of the sellers. Going forward it would take a move above that level to tilt the bias more in favor of the buyers.</p><p>On the downside, getting below the swing area low at 0.8514 would have traders looking toward the swing area between 0.8805 and 0.8827. Between that is the 61.8% treatment of the move up from the July 27 low at 0.88186.</p><p>Conversely, if dollar buyers are able to get the USDCHF above the 0.8900, I would expect the shorts to cover. There is resistance at 0.89524 – the low from last week's trading. </p><p>For the trading week, the USDCHF is down -1.462%. That is the biggest move lower since the week of July 10.</p>

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