Chart USD/CHF Update: Room for a minor test higher
Consolidation is giving way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8250 | congestion | S1 | 0.7900 | congestion | |||
| R3 | 0.8200 | * | congestion | S2 | 0.7870~ | ** | 1 Jul YTD low | |
| R2 | 0.8100 | congestion | S3 | 0.7850 | ** | 76.4% ret of 2011-2016 rally | ||
| R1 | 0.8000 | ** | congestion | S4 | 0.7800 | figure |
Asterisk denotes strength of level
09:30 BST - Consolidation is giving way to a bounce, as intraday studies turn higher, with prices currently trading around 0.7965. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, highlighting a minor improvement in sentiment and putting focus on congestion around 0.8000. A break will open up further congestion around 0.8100. But negative weekly charts and bearish longer-term readings are expected to limit any tests in renewed selling interest/consolidation. Following cautious trade, fresh losses are looked for. Support is at congestion around 0.7900 and extends to the 0.7870~ current year low of 1 July. But a close below the 0.7850 Fibonacci retracement is needed to turn sentiment negative and extend December 2016 losses towards 0.7800.