Chart EUR/USD Update: Leaning lower
Cautious trade beneath strong resistance at 1.1200 is giving way to a sharp pullback
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.1300 | * | congestion | S1 | 1.1100 | * | congestion | |
R3 | 1.1275 | ** | 61.8% ret of 2021-2022 fall | S2 | 1.1050 | congestion | ||
R2 | 1.1200 | ** | break level, 23-24 Aug YTD high | S3 | 1.0990/00 | ** | 50% ret of August rally; congestion | |
R1 | 1.1150 | intraday break level | S4 | 1.0940 | ** | 61.8% ret of August rally |
Asterisk denotes strength of level
08:30 BST - Cautious trade beneath strong resistance at 1.1200 is giving way to a sharp pullback, as overbought intraday studies unwind, with the break below 1.1150 adding weight to sentiment and putting focus on congestion support at 1.1100. Overbought daily stochastics are also turning down and the positive daily Tension Indicator is coming under pressure, highlighting room for a further break beneath here towards congestiona round 1.1050. However, weekly charts are mixed/positive, suggesting any initial tests could give way to fresh consolidation/buying interest. Meanwhile, resistance is lowered to 1.1150, but a close above 1.1200 is needed to turn sentiment positive once again and extend October 2023 gains towards critical multi-month resistance at the 1.1275 Fibonacci retracement.