Chart EUR/USD Update: Room for a minor pullback

Cautious trade is giving way to a test lower

Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.2000/20 | ** | cong; 38.2% ret of 2008-2022 fall | S1 | 1.1700 | * | congestion | |
R3 | 1.1900 | * | congestion | S2 | 1.1600 | * | congestion | |
R2 | 1.1830 | ** | 1 Jul YTD high | S3 | 1.1500 | * | congestion | |
R1 | 1.1800 | * | congestion | S4 | 1.1446 | * | 19 Jun (w) low |
*Asterisk denotes strength of level
08:35 BST - Cautious trade is giving way to a test lower, as intraday studies turn down, with focus turning to congestion around 1.1700. Daily stochastics are unwinding overbought areas and the daily Tension Indicator is turning bearish, highlighting a deterioration in sentiment and room for a test beneath here. Further congestion around 1.1600 will then attract. But rising weekly charts and positive longer-term readings are expected to limit any tests of here in renewed buying interest. Meanwhile, resistance is at congestion around 1.1800 and extends to the 1.1830 current year high of 1 July. A close above here, not yet seen, will turn sentiment positive once again and extend broad September 2022 gains towards further congestion around 1.1900.