Chart USD/CHF Update: Sharp pullback
Cautious trade beneath 0.8000 has given way to a sharp USD-driven pullback
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8040 | ** | 15-16 Jan YTD high | S1 | 0.7875 | ** | 38.2% ret of Jan-Mar rally | |
| R3 | 0.8000 | * | break level | S2 | 0.7850 | * | congestion, recent lows | |
| R2 | 0.7950 | * | congestion | S3 | 0.7835 | 23 Mar (w) low | ||
| R1 | 0.7900 | ** | congestion | S4 | 0.7825 | ** | 50% ret of Jan-Mar rally |
Asterisk denotes strength of level
09:30 BST - Cautious trade beneath 0.8000 has given way to a sharp USD-driven pullback, with prices currently consolidating the test of support at the 0.7875 Fibonacci retracement. Daily readings are turning down and overbought weekly stochastics are unwinding, highlighting room for continuation beneath here towards 0.7850. Still lower is the 0.7825 retracement. But the rising weekly Tension Indicator and positive longer-term charts should limit any initial tests of here in short-covering/consolidation. Meanwhile, resistance is lowered to congestion around 0.7900. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 0.7950.