Chart EUR/CHF Update: Room for lower
Cautious trade is giving way to a drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.9400 | * | congestion | S1 | 0.9245/50 | ** | 61.8% ret; congestion | |
| R3 | 0.9375 | congestion | S2 | 0.9190/00 | ** | 76.4% ret; congestion | ||
| R2 | 0.9350 | * | break level | S3 | 0.9177 | ** | 2 Jul (m) low | |
| R1 | 0.9300 | ** | congestion | S4 | 0.9150 | * | break level |
Asterisk denotes strength of level
10:45 BST - Cautious trade is giving way to a drift lower, as overbought intraday studies unwind, with prices extending pressure on support at the 0.9245 Fibonacci retracement and congestion around 0.9250. Daily readings are bearish and broader weekly charts are also negative, highlighting room for further losses in the coming sessions. A break back below 0.9245/50 will add weight to sentiment and extend late-September losses below the 0.9225 low of 19 October towards strong support within the 0.9190 retracement and congestion around 0.9200. However, already oversold daily stochastics could limit any initial tests in consolidation, before any further losses unfold.
Meanwhile, resistance remains up to congestion around 0.9300. A close back above here, if seen, will help to stabilise sentiment and prompt consolidation beneath 0.9350.