Chart USD/CHF Update: Gains to remain limited
Choppy trade around 0.7900 has given way to the anticipated break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8100 | ** | break level | S1 | 0.7900 | * | congestion | |
| R3 | 0.8050 | break level | S2 | 0.7850 | ** | 76.4% ret of 2011-2016 rally | ||
| R2 | 0.8000 | ** | congestion | S3 | 0.7830~ | ** | 17 Sep YTD low | |
| R1 | 0.7950 | * | congestion | S4 | 0.7800 | figure |
Asterisk denotes strength of level
09:30 GMT - Choppy trade around 0.7900 has given way to the anticipated break higher, with prices currently trading around 0.7930. Rising daily stochastics and a tick higher in the daily the daily Tension Indicator highlight room for a test of congestion resistance at 0.7950. But negative weekly charts should limit any further gains in renewed selling interest beneath further congestion around 0.8000. Following cautious trade, fresh losses are looked for. Immediate support is raised to congestion around 0.7900. But a close below critical support at the 0.7850 Fibonacci retracement and the 0.7830~ current year low of 17 September is needed to add weight to sentiment and extend long-term losses initially towards 0.7800.