Chart EUR/USD Update: Drifting lower towards strong support
Cautious trade has given way to a test of resistance at the 1.1560~ weekly high of 3 August
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1620~ | * | 15 Jun (w) high | S1 | 1.1500 | ** | congestion | |
| R3 | 1.1600 | * | congestion | S2 | 1.1482 | ** | 15 Jul (w) high | |
| R2 | 1.1585 | ** | 50% ret of Apr-Jun fall | S3 | 1.1450 | * | congestion | |
| R1 | 1.1560~ | * | 3 Aug (w) high | S4 | 1.1400 | * | congestion |
*Asterisk denotes strength of level
08:45 BST - Cautious trade has given way to a test of resistance at the 1.1560~ weekly high of 3 August, before reversing into fresh consolidation around 1.1525. Overbought daily stochastics are unwinding and the daily Tension Indicator is turning down, highlighting room for a drift lower towards strong support at congestion around 1.1500 and the 1.1482 weekly high of 15 July. However, rising weekly charts should limit any tests of this range in renewed buying interest/consolidation.
Following cautious/corrective trade, fresh gains are looked for. Resistance remains at 1.1560~. But a close above the 1.1585 Fibonacci retracement is needed to turn sentiment positive and extend late-June gains beyond congestion around 1.1600 towards the 1.1650 retracement.
Meanwhile, a close below 1.1482 - 1.1500, if seen, will add weight to sentiment and extend losses towards 1.1450.