FX October 05, 2020 / 07:35 am UTC

Chart EUR/USD Update: Extending consolidation

By Mike Macdonald


R41.1872*21 Sep high
intraday level
S31.1612**25 Sep (m) low
R11.1770*1 Oct high
S41.1590**50% ret of Jun-Sep rally

Asterisk denotes strength of level

08:20 BST - No significant change, whilst mixed intraday studies keep near-term sentiment cautious and prices balanced in consolidation above 1.1700. Daily momentum readings and the Tension Indicator are positive, highlighting scope for a run higher, but a close above the 1.1770 high of 1 October is needed to turn price action cautiously Positive and extend late September gains. Expectations, however, are for negative weekly charts to limit gains, and keep prices under broad pressure. A later close below 1.1700 will turn sentiment cautiously Negative and put focus on critical support at the 1.1612 monthly low of 25 September and 1.1590 Fibonacci retracement.

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