Chart USD/CHF Update: Under pressure
Cautious trade above 0.8050 has given way to a break lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8170 | * | 1 Aug (w) high, 50% ret | S1 | 0.8000 | ** | congestion | |
| R3 | 0.8132 | 11 Aug (w) high | S2 | 0.7900 | congestion | |||
| R2 | 0.8100 | * | congestion | S3 | 0.7872 | ** | 1 Jul YTD low | |
| R1 | 0.8050 | break level | S4 | 0.7850 | ** | 76.4% ret of 2011-2016 rally |
Asterisk denotes strength of level
09:10 BST - Cautious trade above 0.8050 has given way to a break lower, with prices currently balanced around 0.8015 as oversold intraday studies flatten. Daily readings have turned down, however, and overbought weekly stochastics are also unwinding, suggesting a deterioration in sentiment and room for further losses. A break below congestion support at 0.8000 will add weight to sentiment and extend August losses towards congestion around 0.7900. Critical support is at the 0.7850 Fibonacci retracement and the 0.7872 current year low of 1 July. Already oversold daily stochastics could limit any initial tests of this range in short-covering/consolidation. Meanwhile resistance is up to congestion around 0.8100 and should cap any immediate tests higher.