Chart USD/CHF Update: Leaning lower, but downside to remain limited
The anticipated test below 0.8400 has reached 0.8345~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8550 | congestion | S1 | 0.8300 | ** | congestion | ||
| R3 | 0.8500 | ** | congestion | S2 | 0.8200 | minor congestion | ||
| R2 | 0.8480 | ** | 38.2% ret of Jan-Apr fall | S3 | 0.8100 | minor congestion | ||
| R1 | 0.8400 | * | congestion | S4 | 0.8038 | ** | 21 Apr YTD low |
Asterisk denotes strength of level
09:00 BST - The anticipated test below 0.8400 has reached 0.8345~, where oversold intraday studies are prompting short-term reactions. Overbought daily stochastics are also unwinding, suggesting potential for continuation lower. But the rising daily Tension Indicator and improving weekly charts are expected to limit scope in renewed buying interest above further congestion around 0.8300. Following cautious trade, fresh gains are looked for. A close above congestion resistance at 0.8400 would help to stabilise price action. But a further close above the 0.8480 Fibonacci retracement is needed to turn sentiment positive and extend April gains beyond congestion around 0.8500 towards further congestion around 0.8550.