Chart USD/CHF Update: Limited downside tests
The test of strong resistance at the 0.8170 Fibonacci retracement has given way to a sharp pullback to 0.8020
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8200 | ** | congestion | S1 | 0.8000 | ** | congestion | |
| R3 | 0.8170 | * | 50% ret of May-Jul fall | S2 | 0.7900 | congestion | ||
| R2 | 0.8150 | 30 Jul high | S3 | 0.7850 | ** | 76.4% ret of 2011-2016 rally | ||
| R1 | 0.8100 | * | congestion | S4 | 0.7800 | figure |
Asterisk denotes strength of level
09:25 BST - The test of strong resistance at the 0.8170 Fibonacci retracement has given way to a sharp pullback to 0.8020, where a tick higher in oversold intraday studies is prompting a bounce to congestion resistance at 0.8100. A test above here cannot be ruled out. But unwinding overbought daily stochastics and the flattening positive daily Tension Indicator are expected to limit initial scope in renewed selling interest beneath 0.8170. Meanwhile, support is at congestion around 0.8000. A break below here will open up further congestion around 0.7900, where rising weekly charts should prompt fresh buying interest.