Weekly Chart EUR/USD Update: Consolidating above fresh year low - background studies remain under pressure

Cautious trade has given way to a fresh spike lower, with losses from the 1.1710~ monthly high of 20 August posting a fresh year low around 1.1115~, before bouncing into consolidation above 1.1200.

The daily Tension Indicator is rising, suggesting room for a retest higher into resistance within congestion around 1.1250 and the 1.1285 high of 2 October. But flat overbought daily stochastics and deteriorating weekly and longer-term charts should prompt renewed selling interest within here. A close above 1.1285. however, will help to improve sentiment and extend gains from the 1.1115~ current year low of 14 October towards strong resistance at the 1.1400 break level.

Meanwhile, immediate support is at congestion around 1.1200.

A later close beneath here will open up 1.1115. A further close beneath here will turn sentiment negative and confirm continuation of January losses, initially towards the 1.1065 weekly low of mid-May 2025. Beneath here is congestion around 1.1000, ahead of the 1.0900 Fibonacci retracement.