Chart EUR/USD Update: Under pressure
Choppy trade beneath resistance at 1.1650 has given way to a pullback to congestion support at 1.1600
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1750 | * | congestion | S1 | 1.1600 | * | congestion | |
| R3 | 1.1725 | ** | 76.4% ret of Apr-Jun fall | S2 | 1.1565 | * | 38.2% ret of Jun-Aug rally | |
| R2 | 1.1700/10 | * | congestion; 21 Aug (m) high | S3 | 1.1550 | * | congestion | |
| R1 | 1.1650 | recent range lows | S4 | 1.1515 | * | 50% ret of Jun-Aug rally |
*Asterisk denotes strength of level
08:40 BST - Choppy trade beneath resistance at 1.1650 has given way to a pullback to congestion support at 1.1600, where fresh consolidation is developing. Daily studies are under pressure and overbought weekly stochastics are unwinding, highlighting room for a test beneath here. But the positive weekly Tension Indicator should limit initial scope in fresh consolidation above the 1.1565 Fibonacci retracement. A close beneath here, however, will turn sentiment negative and extend late-August losses towards the 1.1515 retracement.
Meanwhile, a close above 1.1650, if seen, will improve sentiment and open up strong resistance at 1.1700 - 1.1710, where fresh selling interest is expected to appear.