Chart USD/CHF Update: Range trade - background studies under pressure
The test above 0.7850 has met selling interest at 0.7885
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8000 | ** | congestion | S1 | 0.7850 | * | congestion | |
| R3 | 0.7950 | * | congestion | S2 | 0.7800 | * | congestion | |
| R2 | 0.7925 | ** | 29 Apr (w) high | S3 | 0.7770 | ** | 61.8% ret of Jan-Mar rally | |
| R1 | 0.7900 | ** | congestion | S4 | 0.7750 | * | congestion |
Asterisk denotes strength of level
09:25 BST - The test above 0.7850 has met selling interest at 0.7885, as overbought intraday studies unwind, with prices currently balanced in cautious trade around 0.7855. A break beneath here will open up further congestion around 0.7800. But daily readings are mixed, suggesting room for fresh consolidation around here, before deteriorating weekly charts prompt further losses. A close below the 0.7770 Fibonacci retracement is needed to turn sentiment negative and extend late-March losses towards 0.7700/10. Meanwhile, resistance is at congestion around 0.7900 and extends to the 0.7925 weekly high of 29 April. This range should cap any immediate tests higher.