Forex technical analysis: USDCHF tests 100 hour MA/parity area

Double top above. The USDCHF is quietly trading in an up and down trading range today.  On the topside, the high today comes in at  1.00258.   The pair has a double top at the last two week highs at 1.00377 (see chart below).

On the downside there were two quick tumbles lower last week that started on a break of the 100 hour MA. Each of those falls, were quickly reversed.   Today the NY session low has so far stalled at the 100 hour MA at 0.99978. That is also around the parity level — a natural technical level. 
Last Friday the tumble below the 100 hour MA tested the low from Monday. That is also the same level as the swing high from October 25th. Clearly, the 0.9938 is shaping up as another key level to eye on the downside (see lower solid red line). 
In between the 100 hour MA and the 0.9938 swing level is the 200 hour MA at 0.9975.  That MA held on Thursday.
So the steps to the downside are pretty well defined. 

  • 100 hour MA at 0.9997
  • 200 hour MA at 0.9975
  • Swing level at 0.9938

Below that and the door opens up for further downside selling.
Right now, however, the buyers are looking to keep control by staying above the 100 hour MA. If they can hold the line, the 1.0369 double top is the key level  Not only is it the double top, but it represents the highest highs since May 2017. A move above will target the May high at 1.0100. The April 2017 high is not far from that level at 1.01067.  That area will be the next key target. 

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