Chart EUR/USD Update: Balanced at year highs - potential for a minor test lower
The sharp pullback from congestion resistance at 1.1800 has bounced from above congestion support at 1.1700
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2000/20 | ** | cong; 38.2% ret of 2008-2022 fall | S1 | 1.1700 | * | congestion | |
| R3 | 1.1900 | * | congestion | S2 | 1.1600 | * | congestion | |
| R2 | 1.1830 | * | 1 Jul YTD high | S3 | 1.1500 | * | congestion | |
| R1 | 1.1800 | * | congestion | S4 | 1.1446 | * | 19 Jun (w) low |
*Asterisk denotes strength of level
08:35 BST - The sharp pullback from congestion resistance at 1.1800 has bounced from above congestion support at 1.1700, with prices currently balanced back beneath 1.1800. Intraday studies are mixed/negative and daily readings are coming under pressure, highlighting potential for a test below 1.1700. Focus will turn turn to further congestion around 1.1600. But rising weekly charts and positive longer-term readings are expected to limit any tests in renewed buying interest. Following cautious/corrective trade, fresh gains are looked for. A later break above 1.1800 will open up the 1.1830 current year high of 1 July. A close above here will turn sentiment positive once again and extend broad September 2022 gains towards further congestion around 1.1900.