Chart USD/CHF Update: Room for higher
Cautious trade around 0.7800 has given way to a sharp bounce to congestion resistance at 0.7850
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.8000 | ** | break level | S1 | 0.7800 | * | congestion | |
| R3 | 0.7950 | * | congestion | S2 | 0.7770 | ** | 61.8% ret of Jan-Mar rally | |
| R2 | 0.7900 | ** | congestion | S3 | 0.7750 | * | congestion | |
| R1 | 0.7850 | * | congestion | S4 | 0.7700/10 | ** | congestion; 76.4% ret |
Asterisk denotes strength of level
09:00 BST - Cautious trade around 0.7800 has given way to a sharp bounce to congestion resistance at 0.7850, where unwinding overbought intraday studies are prompting short-term reactions. Oversold daily stochastics are unwinding and the daily Tension Indicator has turned positive, highlighting an improvement in sentiment and room for further gains in the coming sessions. A break above 0.7850 will open up further congestion around 0.7900. But deteriorating weekly charts should limit any initial tests in renewed selling interest/consolidation. Meanwhile, support is raised to congestion around 0.7800 and extends to the 0.7770 Fibonacci retracement. A close beneath here, not yet seen, will turn sentiment negative and extend late-March losses below congestion around 0.7750 towards strong support at 0.7700/10.