Chart USD/CHF Update: Limited tests higher
The anticipated test of support at the 0.8800 break level is giving way to a minor bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8950 | congestion | S1 | 0.8800 | * | break level | ||
| R3 | 0.8917 | * | 14 Nov (w) high | S2 | 0.8748 | ** | 15 Aug (w) high | |
| R2 | 0.8900 | ** | 61.8% ret of May-Sep fall | S3 | 0.8700 | * | break level | |
| R1 | 0.8875 | * | break level | S4 | 0.8650 | * | break level |
Asterisk denotes strength of level
09:30 GMT - The anticipated test of support at the 0.8800 break level is giving way to a minor bounce, as oversold intraday studies unwind, with prices currently trading around 0.8850. A test of resistance at the 0.8875 break level cannot be ruled out, but negative daily readings and a tick lower in overbought weekly stochastics should limit any break in renewed selling interest beneath the 0.8900 Fibonacci retracement. A close above here, not yet seen, would turn sentiment positive once again and extend September gains beyond the 0.8917 weekly high of 14 November towards resistance at 0.8950. Following corrective trade, fresh losses are looked for. A break below 0.8800 will add weight to sentiment and open up the 0.8748 weekly high of 15 August. But the rising weekly Tension Indicator is expected to limit any tests of here in fresh buying interest.