USDCHF fell sharply
The USDCHF moved higher initially after the US jobs report, but then reversed and tumbled to the downside.
The fall took the price back below the 100 hour moving average at 1.0030 and below the 50% midpoint of the range since October 21 (that high was duplicated during yesterday’s trade). That midpoint level comes in at 0.9994, but found support buyers ahead of the 200 hour moving average at 0.99786. The low price for the day just reached 0.99816. Buyers/profit takers on the sharp move lower stock a toe in the water and has now pushed the price back up and above the 1.000 parity level. The price is currently trading at 1.0009.
With the 200 hour moving average down at 0.99786 and the 100 hour moving average up at 1.0030. The 52 pips range between the 2 moving averages seems like an area to settle between at least for the time being.
We will see how stocks react. They are opening with strong gains with the NASDAQ up over 200 points and the Dow industrial average up over 350 points at the opening bell.
Meanwhile, the talking heads on CNBC are explaining the strong gains in stocks by looking at the dollar. The dollar traders are looking at the stocks. The debt traders are off high yield levels. Are they looking at the dollar and the stocks?