Chart USD/CHF Update: Limited tests higher
Cautious/choppy trade around congestion support at 0.7950 is giving way to a bounce
| 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 | 0.7850 | ** | 76.4% ret of 2011-2016 rally | ||
| R1 | 0.8000 | ** | congestion | S4 | 0.7830~ | ** | 17 Sep YTD low |
Asterisk denotes strength of level
09:20 GMT - Cautious/choppy trade around congestion support at 0.7950 is giving way to a bounce, as intraday studies turn higher, with focus turning to congestion resistance at 0.8000. A tick higher in oversold daily stochastics suggests potential for a test above here. But the negative daily Tension Indicator and bearish weekly charts are expected to limit any break in renewed selling interest/consolidation towards 0.8050. Following corrective trade, fresh losses are looked for. A close below 0.7950 will open up further congestion around 0.7900, with potential for continuation into critical multi-month support within the 0.7830~/50 range.