Chart EUR/USD Update: Limited gains - studies under pressure
Cautious trade above the 1.1542 weekly low of 9 October has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | historic congestion | S1 | 1.1600 | ** | congestion | |
| R3 | 1.1800 | * | congestion | S2 | 1.1542 | 9 Oct (w) low | ||
| R2 | 1.1700 | * | congestion | S3 | 1.1500 | ** | congestion | |
| R1 | 1.1648 | 9 Oct high | S4 | 1.1400 | ** | cong, Jul-Aug (m) lows |
*Asterisk denotes strength of level
08:30 BST - Cautious trade above the 1.1542 weekly low of 9 October has given way to a bounce, with the break above 1.1600 giving way to consolidation. Oversold daily stochastics are edging higher, suggesting potential for further tests higher. But the negative daily Tension Indicator and bearish weekly charts are expected to limit any break above the 1.1648 high of 9 October in renewed selling interest beneath congestion around 1.1700. Following cautious trade, fresh losses are looked for. A break back below 1.1600 will open up 1.1542. But already oversold weekly stochastics should limit any break in consolidation above congestion around 1.1500.