Chart EUR/USD Update: Smart bounce from fresh year low
Consolidation around 1.1200 has given way to a sharp pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1450 | * | congestion | S1 | 1.1200 | ** | break level | |
| R3 | 1.1400 | ** | congestion | S2 | 1.1130 | ** | 50% ret of 2025-2026 rally | |
| R2 | 1.1325 | ** | 24 Jun (m) low | S3 | 1.1100/15 | ** | figure; 14 Oct YTD low | |
| R1 | 1.1280/00 | ** | break level; congestion | S4 | 1.1065 | ** | 12 May (m) low |
*Asterisk denotes strength of level
08:25 BST - Consolidation around 1.1200 has given way to a sharp pullback, with prices posting a fresh year low around 1.1115 before bouncing smartly into fresh consolidation above 1.1200. Intraday studies are rising and both daily stochastics and the daily Tension Indicator remain positive, highlighting room for further gains in the coming sessions. Resistance is at 1.1280 and extends to congestion around 1.1300. However, negative weekly charts should limit any tests of here in renewed selling interest/consolidation.
Following cautious/corrective trade, fresh losses are looked for. A later break back below 1.1200 will open up the 1.1130 Fibonacci retracement and 1.1115. A further close beneath here will turn sentiment negative and confirm continuation of broad January losses, initially to the 1.1065 monthly low of 12 May.