Chart EUR/USD Update: Bounce from fresh year low - background under pressure
Cautious trade has given way to a dip lower to fresh year lows around 1.1150
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1400 | ** | congestion | S1 | 1.1150~ | ** | 12 Oct YTD low | |
| R3 | 1.1325 | ** | 24 Jun (m) low | S2 | 1.1130 | ** | 50% ret of 2025-2026 rally | |
| R2 | 1.1280/00 | ** | break level; congestion | S3 | 1.1100 | figure | ||
| R1 | 1.1200 | ** | break level | S4 | 1.1065 | ** | 12 May (m) low |
*Asterisk denotes strength of level
08:25 BST - Cautious trade has given way to a dip lower to fresh year lows around 1.1150, before bouncing smartly towards resistance at 1.1200 as oversold intraday studies unwind. Daily stochastics and the daily Tension Indicator are also rising, suggesting room for a test above here. But negative weekly charts should limit scope in renewed consolidation beneath strong resistance within 1.1280 - 1.1300.
Following cautious/corrective trade, fresh losses are looked for. A later break below 1.1150 will open up the 1.1130 Fibonacci retracement. A further close beneath here will turn sentiment negative and confirm continuation of broad January losses.