Chart EUR/USD Update: Limited scope above 1.1600
The anticipated test of congestion resistance at 1.1600 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1830 | ** | 1 Jul YTD high | S1 | 1.1500 | ** | congestion | |
| R3 | 1.1750 | * | break level | S2 | 1.1400 | ** | congestion | |
| R2 | 1.1700 | * | congestion | S3 | 1.1360 | ** | 61.8% ret of May-Jul rally | |
| R1 | 1.1600 | * | congestion | S4 | 1.1300 | * | congestion |
*Asterisk denotes strength of level
08:30 BST - The anticipated test of congestion resistance at 1.1600 is giving way to consolidation, as overbought intraday studies unwind, with prices currently balanced around 1.1555. Oversold daily stochastics are edging higher, suggesting room for a test above 1.1600. But the negative daily Tension Indicator and bearish weekly charts are expected to limit scope in renewed selling interest beneath further congestion around 1.1700. Meanwhile, support remains at congestion around 1.1500. But a close below further congestion around 1.1400 is needed to turn sentiment negative and extend July losses initially to the 1.1360 Fibonacci retracement. A further close beneath here will open up 1.1300.