Published: 2024-05-03T08:10:03.000Z
Chart USD/CHF Update: Extending losses
Senior Technical Strategist
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Choppy trade is giving way to the anticipated break lower
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 0.9224 | * | 1 May YTD high | S1 | 0.9060 | break level | ||
R3 | 0.9200 | * | congestion | S2 | 0.9035 | * | 38.2% ret of Mar-May rally | |
R2 | 0.9150 | * | congestion | S3 | 0.9000 | * | break level | |
R1 | 0.9100 | * | break level | S4 | 0.8980 | ** | 50% ret of Mar-May rally |
09:00 BST - Choppy trade is giving way to the anticipated break lower, with the break below 0.9100 opening up 0.9060. Daily readings have turned down and overbought weekly stochastics are unwinding, highlighting a bearish tone and room for deeper losses in the coming sessions. A break below 0.9060 will target the 0.9035 Fibonacci retracement, with further slippage focusing on 0.8980 - 0.9000. Meanwhile, a close back above 0.9100, if seen, will turn sentiment neutral once again and prompt consolidation beneath congestion resistance at 0.9150.