Chartbook: Chart EUR/USD: Choppy in multi-month range - studies under pressure

The anticipated retest of critical support at the 1.1350 Fibonacci retracement has given way to a bounce,

with prices breaking back into multi-month congestion within the 1.1550 - 1.1800 range.

Flat oversold monthly stochastics are coming under fresh pressure, and the monthly Tension Indicator continues to weaken, highlighting a deterioration in sentiment and room for fresh losses in the coming months.

A close below 1.1550 will add weight to sentiment and open up 1.1350. However, already oversold monthly stochastics could limit any initial tests in fresh consolidation, before worsening longer-term readings prompt a break.

A later close beneath here will turn sentiment bearish, complete a multi-month distribution top and confirm a significant top in place at the 1.2080 current year high 27 January. Focus will then turn initially to the 1.1130 retracement, ahead of strong support at 1.1000.

Meanwhile, resistance is up to the 1.1800 multi-month range highs.

Any immediate gains should meet renewed selling beneath here, as weekly studies turn down.

However, a close above here, if seen, will help to improve sentiment and put focus back on psychological resistance at 1.2000 and the 1.2080 current year high.