USDCHF fell sharply

USDCHF rose initially after the US jobs report, but then reversed and fell lower.

The drop took the price back below the 100 hourly moving average at 1.0030 and below the 50% midpoint of the range since October 21 (this high was duplicated in yesterday’s trade). This mid-level sits at 0.9994 but has found support buyers ahead of the 200 hourly moving average at 0.99786. The low price of the day has just reached 0.99816. Buyers/profit takers on the sharp move took stocks one toe in the water and have now pushed the price back above the 1,000 parity level. The price is currently trading at 1.0009.

With the 200 hourly moving average down to 0.99786 and the 100 hourly moving average up to 1.0030. The 52 pip range between the 2 moving averages seems like an area to settle, at least for now.

We will see how stocks react. They open with strong gains with the NASDAQ up over 200 points and the Dow Industrial Average up over 350 points at the opening bell.

Meanwhile, CNBC’s talking heads explain the stocks’ strong gains by looking at the dollar. Dollar traders watch stocks. Debt traders are out of high yield levels. Are they watching the dollar and stocks?

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