Chart USD/CHF Update: Limited tests higher
The anticipated test of support at the 0.8965 Fibonacci retracement is giving way to a sharp bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.9200 | * | cong, 13 Jan YTD high | S1 | 0.9000 | ** | congestion | |
| R3 | 0.9150 | * | congestion tops | S2 | 0.8965 | ** | 50% ret of Dec-Jan rally | |
| R2 | 0.9100 | ** | break level | S3 | 0.8900/10 | ** | congestion; 61.8% ret | |
| R1 | 0.9050 | * | congestion | S4 | 0.8840 | ** | 76.4% ret of Dec-Jan rally |
Asterisk denotes strength of level
09:05 GMT - The anticipated test of support at the 0.8965 Fibonacci retracement is giving way to a sharp bounce, as intraday studies turn higher, with prices currently trading just above congestion resistance at 0.9050. Oversold daily stochastics are also flattening, suggesting potential for continuation towards 0.9100. But the bearish daily Tension Indicator and deteriorating weekly charts are expected to prompt renewed selling interest towards 0.9100. Following corrective gains, fresh losses are looked for. Support remains at congestion around 0.9000, but a close below 0.8965 is needed to turn sentiment outright negative and confirm continuation of January losses.