Chart USD/CHF Update: Consolidating
Anticipated tests higher have met selling interest just beneath congestion resistance at 0.8000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8250 | congestion | S1 | 0.7900 | congestion | |||
| R3 | 0.8200 | * | congestion | S2 | 0.7870~ | ** | 1 Jul YTD low | |
| R2 | 0.8100 | congestion | 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 - Anticipated tests higher have met selling interest just beneath congestion resistance at 0.8000, as overbought intraday studies unwind, with prices currently trading around 0.7965. A minor pullback is highlighted, but rising daily readings are expected to limit initial downside potential in renewed consolidation above support at the 0.7870~ current year low of 1 July and congestion at 0.7900. However, weekly and longer-term charts are negative, pointing to room for still further losses. A close below the 0.7850 Fibonacci retracement is needed to turn sentiment negative and extend December 2016 losses towards 0.7800. Meanwhile, a break above 0.8000, if seen, should be limited in fresh selling interest beneath congestion resistance at 0.8100.