FX November 02, 2020 / 08:25 am UTC

Chart EUR/USD Update: Focus on critical support at 1.1590-1.1612/15

By Mike Macdonald




LevelsImpComment

LevelsImpComment
R41.1850
intraday break level
S11.1612/15**September lows
R31.1800*congestion
S21.1590**50% ret of Jun-Sep rally
R21.1750*congestion
S31.1540
23 Jul low
R11.1700*congestion
S41.1485/90**Fibonacci rets

Asterisk denotes strength of level


08:15 GMT - Short-term consolidation is giving way to fresh losses, whilst both intraday and daily momentum readings continue to track lower, with prices now approaching critical support at the 1.1612/15 lows of September and the 1.1590 Fibonacci retracement. Initial tests could give way to fresh consolidation, before deteriorating weekly charts prompt further losses. A later close beneath here will confirm a top in place at 1.2000 and extend September losses towards 1.1485/90. Meanwhile, resistance at 1.1700 should continue to cap any immediate gains. An unexpected close above here, however, would delay downside development and put prices into consolidation, capped by 1.1750.

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