Chart EUR/USD Update: Fresh year highs - studies continue to rise
Cautious trade around 1.0500 has given way to continuation of January gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0875 | break level | S1 | 1.0600 | ** | congestion | ||
| 14 | 1.0815 | ** | 61.8% ret of Sep-Jan fall | S2 | 1.0533 | ** | 27 Jan (m) high | |
| R2 | 1.0800 | ** | break level | S3 | 1.0500 | * | break level | |
| R1 | 1.0690 | ** | 50% ret of Sep-Jan fall | S4 | 1.0450 | congestion |
Asterisk denotes strength of level
08:40 GMT - Cautious trade around 1.0500 has given way to continuation of January gains, with prices currently pressuring resistance at the 1.0690 Fibonacci retracement. Daily readings continue to strengthen and the weekly Tension Indicator is also positive, highlighting room for a break above here and a test of stronger resistance at 1.0800/15. However. overbought weekly stochastics are flattening, suggesting any initial tests of this area could give way to profit-taking/consolidation. Meanwhile, support is raised to congestion around 1.0600. A close beneath here, if seen, will turn sentiment neutral and prompt consolidation above strong support within 1.0500/33.