Chart USD/CHF Update: Extending January gains
Cautious trade has given way to the anticipated break above 0.7950
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8100 | ** | congestion | S1 | 0.7950 | * | congestion | |
| R3 | 0.8085 | 8 Dec (m) high | S2 | 0.7900 | ** | congestion | ||
| R2 | 0.8040 | ** | 15-16 Jan YTD high | S3 | 0.7850 | * | congestion, recent lows | |
| R1 | 0.8000 | * | break level | S4 | 0.7825 | * | 38.2% ret of Jan-Mar rally |
Asterisk denotes strength of level
09:00 GMT - Cautious trade has given way to the anticipated break above 0.7950, as intraday studies turn higher, with prices currently trading around 0.7970. Daily stochastics are rising and the flat daily Tension Indicator is also ticking up, suggesting room for continuation of later-January gains towards 0.8000. Still higher is stronger resistance at the 0.8040 current year high of 15-16 January. However, by-then overbought daily stochastics could limit any initial tests in consolidation, before rising weekly charts prompt still further gains. Meanwhile, a close back below 0.7950 will stabilise sentiment and prompt consolidation above 0.7900.