Chart USD/CHF Update: Limited tests higher
Consolidation around 0.7950 is giving way to the anticipated break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8155 | ** | 50% ret of May-Sep fall | S1 | 0.7950 | * | congestion | |
| R3 | 0.8100 | ** | break level | S2 | 0.7900 | * | congestion | |
| R2 | 0.8050 | break level | S3 | 0.7878 | * | 14 Nov (w) low | ||
| R1 | 0.8000 | ** | congestion | S4 | 0.7850 | ** | 76.4% ret of 2011-2016 rally |
Asterisk denotes strength of level
09:15 GMT - Consolidation around 0.7950 is giving way to the anticipated break higher, with prices currently trading around 0.7960. Intraday studies are mixed/positive, suggesting room for continuation towards congestion resistance at 0.8000. But mixed/negative daily readings and deteriorating weekly charts should limit any tests in renewed selling interest/consolidation. Meanwhile, support remains at congestion around 0.7900. Critical support, however, is at the 0.7830 current year low of 17 September and the 0.7850 Fibonacci retracement. A close beneath here would turn sentiment negative and extend December 2016 losses initially towards 0.7800.