Chart USD/CHF Update: Under pressure
Cautious trade around resistance at 0.8050 has given way to a sharp pullback in both USD- and CHF-driven trade
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8132 | 11 Aug (w) high | S1 | 0.7900 | congestion | |||
| R3 | 0.8100 | * | congestion | S2 | 0.7872 | ** | 1 Jul YTD low | |
| R2 | 0.8050 | break level | S3 | 0.7850 | ** | 76.4% ret of 2011-2016 rally | ||
| R1 | 0.8000 | ** | congestion | S4 | 0.7800 | * | figure |
Asterisk denotes strength of level
09:15 BST - Cautious trade around resistance at 0.8050 has given way to a sharp pullback in both USD- and CHF-driven trade, with prices currently trading around 0.7960. Daily readings have turned down, highlighting room for continuation towards critical support at congestion around 0.7900 and the 0.7872 current year low of 1 July. However, mixed weekly charts are expected to limit any initial tests in fresh consolidation. A close beneath here would turn sentiment outright negative. But a further close below the 0.7850 Fibonacci retracement is needed to confirm continuation of 2016 losses. Meanwhile, resistance is lowered to congestion around 0.8000. A close back above here, if seen, will turn sentiment neutral and prompt consolidation beneath 0.8050.