Chart EUR/USD Update: Potential for further tests higher
The test below support at the 1.0870 break level has bounced smartly
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0985 | ** | 50% ret of Sep-Oct fall | S1 | 1.0870 | break level | ||
| R3 | 1.0950 | break level | S2 | 1.0800 | * | congestion | ||
| R2 | 1.0930 | ** | 38.2% ret of Sep-Oct fall | S3 | 1.0761 | ** | 23 Oct (w) low | |
| R1 | 1.0900 | ** | break level | S4 | 1.0750 | ** | 76.4% ret of Aug-Sep rally |
Asterisk denotes strength of level
08:35 GMT - The test below support at the 1.0870 break level has bounced smartly, with prices currently trading around 1.0890. Intraday studies have ticked higher and the daily Tension Indicator is rising, highlighting room for a test above here. However, overbought daily stochastics and mixed/negative weekly charts are expected to prompt fresh selling interest towards the 1.0930 Fibonacci retracement. A further close above here, however, would improve sentiment and extend October gains beyond 1.0950 towards the 1.0985 retracement. Meanwhile, a close below 1.0870 would turn sentiment neutral and give way to consolidation/choppy trade above congestion support at 1.0800.