Chart USD/CHF Update: Limited scope above 0.8875
Cautious trade has given way to the anticipated break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.9050 | ** | 3 Jul (m) high | S1 | 0.8800 | * | break level | |
| R3 | 0.9000 | ** | congestion | S2 | 0.8735 | * | 38.2% ret of Sep-Nov rally | |
| R2 | 0.8950 | congestion | S3 | 0.8700 | * | break level | ||
| R1 | 0.8875 | * | break level | S4 | 0.8665 | ** | 50% ret of Sep-Nov rally |
Asterisk denotes strength of level
08:55 GMT - Cautious trade has given way to the anticipated break higher, with CHF-driven gains currently consolidating the test of resistance at the 0.8875 break level. Rising daily stochastics highlight room for a fresh test above here. But the flattening daily Tension Indicator and negative weekly charts are expected to limit scope in renewed selling interest beneath congestion resistance at 0.8950. Meanwhile, support remains at 0.8800. A close beneath here, not yet seen, will turn price action neutral. But a further close below the 0.8735 Fibonacci retracement will turn sentiment outright negative and extend November losses below 0.8700 towards the 0.8665 retracement.