Chart USD/CHF Update: Sharp pullback from current year highs
The anticipated test of strong resistance at the 0.8040 current year high of 15-16 January has given way to a sharp pullback in profit-taking
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8085 | 8 Dec (m) high | S1 | 0.7900 | ** | congestion | ||
| R3 | 0.8040 | ** | 15-16 Jan YTD high | S2 | 0.7850 | * | congestion, recent lows | |
| R2 | 0.8000 | * | break level | S3 | 0.7835 | 23 Mar (w) low | ||
| R1 | 0.7950 | * | congestion | S4 | 0.7800 | * | congestion |
Asterisk denotes strength of level
09:25 BST - The anticipated test of strong resistance at the 0.8040 current year high of 15-16 January has given way to a sharp pullback in profit-taking, with prices currently trading around 0.7830. Daily readings are under pressure and overbought weekly stochastics are ticking lower, suggesting room for still deeper losses in the coming sessions. Support is at congestion around 0.7900. A break beneath here will open up 0.7850. But the rising weekly Tension Indicator and positive longer-term readings could limit any initial tests of here in consolidation. Meanwhile, resistance is lowered to congestion around 0.7950. A close above here would help to stabilise price action and prompt consolidation beneath 0.8000.