Chart USD/CHF Update: Lower in choppy trade
Choppy trade beneath resistance at 0.8050 has given way to a sharp pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8170 | ** | 1 Aug (m) high | S1 | 0.8000 | ** | congestion | |
| R3 | 0.8155 | ** | 50% ret of May-Sep fall | S2 | 0.7950 | * | congestion | |
| R2 | 0.8100 | ** | break level | S3 | 0.7900 | * | congestion | |
| R1 | 0.8050 | break level | S4 | 0.7850 | ** | 76.4% ret of 2011-2016 rally |
Asterisk denotes strength of level
09:20 GMT - Choppy trade beneath resistance at 0.8050 has given way to a sharp pullback, as intraday studies turn down, with the break below 0.8000 bouncing from 0.7980~ to currently trade around 0.8000. Overbought daily stochastics are turning down, unwinding negative divergence, and the positive daily Tension Indicator is flattening, suggesting room for fresh losses in the coming sessions. A close below congestion support at 0.8000 will add weight to sentiment and open up further congestion around 0.7950. However, rising weekly charts could limit any initial tests in consolidation. Meanwhile, resistance remains at 0.8050 and should cap any immediate tests higher.