Below an old swing area after waffling above and below this week
Adam posted that the CHF is the strongest of the major currencies vs. the USD. The pair closed a week ago around 1.0015. The price is down at 0.9945. That is not a heck of a lot of pips but it was enough to take the strongest honors.
What does the chart say?
Looking at the daily chart, the 0.9980-91 was a ceiling area from mid-May and into June. On July 12th, the price ran higher, and in the process, moved above the 2018 highs from early May at 1.0054. The high could reach 1.0067, stalled and failed on the break (that was last Friday).
This week, the price has traded into the 0.9880-91 area on each day this week.
Today, the price moved below and at the current levels. If the price closed here (at 0.9936), that would be the lowest close since breaking above the “yellow area” on July 12th.
Are the sellers taking more control?
Stay below the yellow area keeps the sellers in charge (you can take that into next week too)..
Drilling to the hourly chart below, the pair moved below the 200 hour MA earlier in the day and then got kicked lower with the dollar weakness. The pair moved to the 61.8% of the July range at 0.9937. We are moving below that level now (making new lows). The low for the week comes in at 0.99258 and is the next target.
So, the CHF is the weakest vs. the USD this week and the pair is showing that the sellers are trying to take more control. We will see how it plays out in the new trading week.