Chart USD/CHF Update: Edging higher in USD- and CHF-driven trade
Cautious trade has given way to the anticipated test of congestion resistance at 0.8000 in both USD- and CHF-driven trade
| 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 | 0.7878 | * | 14 Nov (w) low | ||
| R1 | 0.8000 | ** | congestion | S4 | 0.7850 | ** | 76.4% ret of 2011-2016 rally |
Asterisk denotes strength of level
09:05 GMT - Cautious trade has given way to the anticipated test of congestion resistance at 0.8000 in both USD- and CHF-driven trade, where unwinding overbought intraday studies are prompting renewed consolidation. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, highlighting room for further strength in the coming sessions. A break above here will open up the 0.8050 break level. But deteriorating weekly charts are expected to limit any initial tests in consolidation. Meanwhile, support remains at congestion around 0.7900. Critical support, however, is at the 0.7830 current year low of 17 September and the 0.7850 Fibonacci retracement. A close beneath here would turn sentiment negative and extend December 2016 losses initially towards 0.7800.