Chart EUR/USD Update: Limited tests higher
Consolidation around 1.1700 has given way to the anticipated break above 1.1700
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | * | congestion | S1 | 1.1700 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1600 | * | congestion | |
| R2 | 1.1800 | * | congestion | S3 | 1.1540 | * | 38.2% ret of May-Jul rally | |
| R1 | 1.1750 | * | break level | S4 | 1.1500 | * | congestion |
*Asterisk denotes strength of level
08:35 BST - Consolidation around 1.1700 has given way to the anticipated break above 1.1700, with prices reaching 1.1760 before settling back to 1.1740. Intraday studies are under pressure, suggesting potential for a drift lower back towards 1.1700. But rising daily readings should limit any tests in renewed buying interest. In the coming sessions, a break above 1.1750 is highlighted. But negative weekly charts are expected to prompt fresh selling interest towards congestion around 1.1800. Meanwhile, a close below 1.1700, not yet seen, will turn sentiment neutral once again and give way to consolidation above 1.1600. A break beneath here will add weight to sentiment and extend July losses initially towards the 1.1540 Fibonacci retracement.