Chart EUR/USD Update: Consolidating sharp gains - studies improving
Anticipated gains have reached the 1.1525 Fibonacci retracement in heightened volatility
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1620~ | * | 15 Jun (w) high | S1 | 1.1500 | ** | congestion | |
| R3 | 1.1600 | * | congestion | S2 | 1.1482 | ** | 15 Jul (w) high | |
| R2 | 1.1585 | ** | 50% ret of Apr-Jun fall | S3 | 1.1450 | * | congestion | |
| R1 | 1.1525 | * | 38.2% ret of Apr-Jun fall | S4 | 1.1400 | * | congestion |
*Asterisk denotes strength of level
08:35 BST - Anticipated gains have reached the 1.1525 Fibonacci retracement in heightened volatility, before settling back into consolidation above 1.1500. Daily stochastics and the daily Tension Indicator continue to rise, and oversold weekly stochastics are unwinding, highlighting room for further strength in the coming sessions. A break above 1.1525 will help to improve sentiment and extend late-June gains towards the 1.1585 retracement and congestion around 1.1600. However, overbought daily stochastics should prompt profit-taking towards here. Meanwhile, support is raised to congestion around 1.1500. However, a close below the 1.1482 weekly high of 15 July would turn sentiment neutral and prompt consolidation above further congestion around 1.1450.