FX December 13, 2022 / 08:37 am UTC

Chart EUR/USD Update: Extending consolidation beneath the 1.0610 Fibonacci retracement

By Mike Macdonald


S21.0443*7 Dec (w) low
R21.0610**38.2% ret of
2020-2021 fall

R11.0595/00**5 Dec high; cong


Asterisk denotes strength of level

08:25 GMT - Still little change, as mixed/negative intraday studies keep near-term sentiment cautious and extend consolidation above congestion support at 1.0500. Daily readings are leaning lower, however, highlighting potential for a later break beneath towards strong support at the 1.0443 weekly low of 7 December, where rising weekly charts are expected to prompt fresh buying interest. A further close beneath here will turn sentiment negative and signal a near-term top in place just beneath 1.0600/10. Meanwhile, a close above the 1.0610 Fibonacci retracement will turn price action positive and confirm continuation of September gains.

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