FX January 08, 2021 / 08:26 am UTC

Chart EUR/USD Update: Extending lower

By Mike Macdonald


R41.2476*Mar 2018 high
R31.2400/14*cong; Apr 2018 high
intraday cong
22 Dec low
S41.2129*21 Dec (w) low

Asterisk denotes strength of level

08:15 GMT - Anticipated profit-taking is keeping prices under pressure, with congestion around 1.2200 now approaching. Intraday studies are oversold, highlighting potential for consolidation around here, before deteriorating daily stochastics and the falling Tension Indicator prompt still deeper reactions. A close beneath here will add fresh weight to sentiment and open up critical support at the 1.2129 weekly low of 21 December. Meanwhile, resistance is up to 1.2300 and extends to 1.2335. An unexpected close above here would turn sentiment Positive once again and extend broad March gains towards 1.2400/14.

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