Chart EUR/CHF Update: Room for lower
Cautious trade beneath congestion resistance at 0.9400 has given way to a sharp pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.9490/00 | ** | 61.8% ret; congestion | S1 | 0.9315 | * | 28 Aug (w) low | |
| R3 | 0.9435 | * | 50% ret of Mar-Apr fall | S2 | 0.9300 | ** | congestion | |
| R2 | 0.9400 | ** | congestion | S3 | 0.9260 | break level | ||
| R1 | 0.9350 | ** | congestion | S4 | 0.9212 | ** | 11 Apr YTD low |
Asterisk denotes strength of level
10:55 BST - Cautious trade beneath congestion resistance at 0.9400 has given way to a sharp pullback, as intraday studies turn down, with the break below 0.9350 currently trading around 0.9335. Daily readings have turned down and broader weekly charts continue to point lower, suggesting room for still deeper losses in the coming sessions. Support is at the 0.9315 weekly low of 28 August. A break beneath here will add weight to sentiment and extend mid-August losses below congestion support at 0.9300 towards 0.9260. Meanwhile, a close back above 0.9350 will help to stabilise price action and prompt consolidation beneath further congestion around 0.9400.