USD/CHF has compressed into a 27-pip trading range, with the 100- and 200-hour moving averages converging at 0.83138. The narrow range signals the market is waiting, but it does not show which direction the next move will take.
USD/CHF's low-to-high range has narrowed to just 27 pips, leaving the pair barely moving. At the same time, the 100- and 200-hour moving averages have converged at 0.83138, giving traders a single reference point to watch for the next move.
A tight range like this does not point to a direction. It only shows the market is waiting. Traders need to watch how price behaves around the converged moving averages and the day's recent extremes to read the next move.
If USD/CHF moves above the moving averages, breaks the day's high and holds there, buyers gain room to run. If it moves below the averages instead, breaks the low and stays under it, sellers get their opening.
Follow-through is the key test. A quick break that snaps back into the range is a false start; a break that holds gives traders a clearer bias and a level to set risk against.
Source: investingLive
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