Chart USD/CHF Update: Cautious trade
Consolidation following the test above congestion resistance at 0.8200 is giving way to a drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8350 | * | break level | S1 | 0.8150 | congestion | ||
| R3 | 0.8300 | * | congestion lows | S2 | 0.8120 | ** | 61.8% ret of Aug-Oct rally | |
| R2 | 0.8250 | congestion | S3 | 0.8100 | ** | congestion | ||
| R1 | 0.8200 | * | congestion | S4 | 0.8055 | ** | 76.4% ret of Aug-Oct rally |
Asterisk denotes strength of level
10:00 GMT - Consolidation following the test above congestion resistance at 0.8200 is giving way to a drift lower, as intraday studies turn down, with prices currently trading around 0.8175. Focus is expected to turn to congestion support at 0.8150. But a tick higher in oversold daily stochastics and the flattening bearish daily Tension Indicator should limit any initial tests in consolidation. Any immediate break, if seen, is expected to meet renewed buying interest towards the 0.8120 Fibonacci retracement, before negative weekly charts prompt further losses.
Meanwhile, any tests back above 0.8200 should meet renewed selling interest towards further congestion around 0.8250.