Chart EUR/USD Update: Poised for further losses
The anticipated test of congestion around 1.1600 has extended to 1.1578
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1750 | * | congestion | S1 | 1.1600 | * | congestion | |
| R3 | 1.1725 | ** | 76.4% ret of Apr-Jun fall | S2 | 1.1578 | * | 28-31 Aug low | |
| R2 | 1.1700 | * | congestion | S3 | 1.1550 | * | congestion | |
| R1 | 1.1650 | recent range lows | S4 | 1.1500 | * | congestion |
*Asterisk denotes strength of level
08:30 BST - The anticipated test of congestion around 1.1600 has extended to 1.1578, before bouncing back into choppy trade around 1.1600 as intraday studies turn mixed. Daily stochastics and the daily Tension Indicator continue to track lower, and overbought weekly stochastics are turning down, highlighting room for further losses in the coming sessions. A close below 1.1578 will add weight to sentiment and extend late-August losses towards congestion around 1.1550. Already oversold daily stochastics should limit any immediate continuation beneath here in consolidation within congestion above 1.1500.
Meanwhile, resistance is lowered to 1.1650. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath congestion resistance at 1.1700.