Chart EUR/USD Update: Prices remain under pressure
Consolidation has given way to anticipated selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1600 | * | congestion | S1 | 1.1420 | ** | 76.4% ret of Jun-Aug rally | |
| R3 | 1.1550 | * | congestion | S2 | 1.1400 | ** | congestion | |
| R2 | 1.1500 | * | congestion | S3 | 1.1325 | ** | 24 Jun YTD low | |
| R1 | 1.1450 | congestion | S4 | 1.1300 | ** | congestion |
*Asterisk denotes strength of level
08:25 BST - Consolidation has given way to anticipated selling interest, as intraday studies turn down, with prices currently pressuring support at the 1.1420 Fibonacci retracement. Just lower is congestion around 1.1400. Daily readings are under pressure and broader weekly charts are bearish, highlighting room for further losses in the coming sessions. A close beneath here will add weight to sentiment and extend late-August losses towards critical support at the 1.1325 current year low of 24 June. Already oversold daily stochastics could limit any initial tests in short-covering/consolidation, before further losses are seen.
Meanwhile, resistance is lowered to congestion around 1.1450. A close above here, if seen, will help to stabilise sentiment and prompt fresh consolidation beneath further congestion around 1.1500.