Technical Analysis

USDCHF test 0.9000 level and technical trend line support on the hourly chart

Low reached 0.90049 on the run lower.

The USDCHF has tumbled lower and in the process is testing a lower trendline on the hourly chart around 0.90073.  That is also near old swing area going back to November 5 November 6 as the pair was bottoming at 0.89782 during that time period.

The low price just reached 0.90049 . Needless to say the round number of 0.9000 is a natural support level as well.

There is some slowing against the area. However the sharp fall could see further momentum selling on a break of the 0.9000 level. 

It’s one of those times when traders are trying to catch a falling knife.  The good news is risk can be defined and limited, but not sure how long the buyers would stay in on more selling – especially below the 0.9000 level.  

PS, the selling today started when the price could not extend above its 200 hour moving average (green line in the chart above. Sellers against that level have benefited from a trend like moved to the downside.

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