Chart EUR/USD Update: Cautious trade - studies turning down
Little change, as prices extend cautious trade around 1.1650
| 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
08:30 BST - Little change, as prices extend cautious trade around 1.1650. Intraday studies continue to point lower and rising daily stochastics are flattening, suggesting room for a fresh test lower towards congestion support at 1.1600. The rising daily Tension Indicator could limit any initial tests in consolidation, before deteriorating weekly charts prompt further losses. 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.