Chart USD/CHF Update: Strong resistance at 0.8040
Cautious trade has given way to the anticipated test of resistance at 0.8000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8100 | ** | congestion | S1 | 0.7950 | * | congestion | |
| R3 | 0.8085 | 8 Dec (m) high | S2 | 0.7900 | ** | congestion | ||
| R2 | 0.8040 | ** | 15-16 Jan YTD high | S3 | 0.7850 | * | congestion, recent lows | |
| R1 | 0.8000 | * | break level | S4 | 0.7825 | * | 38.2% ret of Jan-Mar rally |
Asterisk denotes strength of level
09:10 BST - Cautious trade has given way to the anticipated test of resistance at 0.8000, where mixed/positive intraday studies are prompting fresh consolidation. Daily readings continue to rise, highlighting room for a later break and extension of late-January gains towards stronger resistance at the 0.8040 current year high of 15-16 January. However, by-then overbought daily stochastics could limit any initial tests in consolidation, before rising weekly charts prompt still further gains. Meanwhile, support remains at congestion around 0.7950. A close back beneath here, if seen, will stabilise sentiment and prompt consolidation above 0.7900.