Chart USD/CHF Update: Drifting lower
Cautious trade is giving way to the anticipated drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8132 | 11 Aug (w) high | S1 | 0.7900 | congestion | |||
| R3 | 0.8100 | * | congestion | S2 | 0.7872 | ** | 1 Jul YTD low | |
| R2 | 0.8050 | break level | S3 | 0.7850 | ** | 76.4% ret of 2011-2016 rally | ||
| R1 | 0.8000 | ** | congestion | S4 | 0.7800 | * | figure |
Asterisk denotes strength of level
09:20 BST - Cautious trade is giving way to the anticipated drift lower, with prices currently trading around 0.7925. Daily readings are negative and broader weekly charts are deteriorating, highlighting room for further losses in the coming sessions. A break below congestion support at 0.7900 will open up critical support at the 0.7872 current year low of 1 July. A further close beneath here will turn sentiment outright negative and open up the 0.7850 Fibonacci retracement. By-then oversold daily stochastics could limit any initial tests in consolidation. Meanwhile, any immediate tests above congestion resistance at 0.8000 should be limited in consolidation beneath 0.8050.