Chart USD/CHF Update: Sharp bounce
Cautious trade above congestion support at 0.7850 has given way to a sharp bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.81000 | ** | break level | S1 | 0.7900 | ** | congestion | |
| R3 | 0.8040 | ** | 15-16 Jan YTD high | S2 | 0.7850 | congestion | ||
| R2 | 0.8000 | * | break level | S3 | 0.7825 | congestion | ||
| R1 | 0.7950 | * | congestion | S4 | 0.7800 | * | break level |
Asterisk denotes strength of level
09:10 GMT - Cautious trade above congestion support at 0.7850 has given way to a sharp bounce, with prices currently balanced around 0.7830 as intraday studies turn mixed and overbought daily stochastics flatten. The daily Tension Indicator continues to rise and broader weekly charts are also positive, highlighting room for further strength in the coming sessions. A break above congestion resistance at 0.7950 will help to improve sentiment and extend late-January gains towards 0.8000. Meanwhile, a close back below congestion support at 0.7900, if seen, will turn sentiment cautious once again and prompt fresh consolidation above 0.7850.