Chart EUR/USD Update: Drifting lower
The anticipated test of congestion support at 1.1600 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | Jul-Sep 2021 break level | S1 | 1.1600 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1750 | * | break level | S3 | 1.1400 | ** | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1360 | ** | 61.8% ret of May-Jul rally |
*Asterisk denotes strength of level
08:35 BST - The anticipated test of congestion support at 1.1600 is giving way to consolidation, as oversold intraday studies unwind and the daily Tension Indicator continues to rise, with prices currently balanced around 1.1615. However, daily stochastics are turning down and broader weekly charts are deteriorating, highlighting room for further losses in the coming sessions. A close below 1.1600 will add weight to sentiment and open up further congestion around 1.1500. Meanwhile, resistance remains at congestion around 1.1700 and extends to 1.1750. This range should cap any immediate tests higher. Critical resistance, however, is at the 1.1830 current year high of 1 July. A close above here would turn sentiment positive and confirm continuation of September 2022 gains.