Published: 2024-06-12T12:10:30.000Z
Chartbook: Chart EUR/CHF: Pullback in the coming weeks to give way to consolidation
Senior Technical Strategist
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Anticipated gains have extended to congestion resistance at 0.9900, with selling interest appearing just above here at 0.9930
Anticipated gains have extended to congestion resistance at 0.9900, with selling interest appearing just above here at 0.9930.
Weekly stochastics are turning lower, unwinding negative divergence, and the weekly Tension Indicator is also under pressure, highlighting a bearish tone and potential for a corrective pullback into 2024 Q3.
Immediate focus is on the 0.9595 Fibonacci retracement, but the weight of selling interest is expected to keep price action heavy, and prompt a deeper pullback from the 0.9930 current year high of 24 May.
A close below 0.9595 will open up stronger support at the 0.9515 retracement and congestion around 0.9500. But any deeper losses should give way to fresh buying interest/consolidation above the 0.9415 retracement, as broader weekly charts turn mixed/positive
Meanwhile, resistance is at the 0.9900 Fibonacci retracement and extends to 0.9930.
A later close above here will turn sentiment positive and extend gains from the 0.9255~ all-time low of December 2023 towards psychological resistance at 1.0000.
Continuation beyond parity will further improve broad sentiment and extend gains initially towards strong resistance at the 1.0200 retracement and trendline resistance from April 2018.