Chart EUR/USD Update: Studies under pressure
Cautious trade has given way to fresh selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1725 | * | 38.2% ret of Jan-Mar fall | S1 | 1.1550 | * | congestion | |
| R3 | 1.1700 | * | congestion | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1650 | congestion | S3 | 1.1470~ | ** | 5 Nov (m) low | ||
| R1 | 1.1600 | ** | congestion | S4 | 1.1400 | * | congestion |
*Asterisk denotes strength of level
08:40 GMT - Cautious trade has given way to fresh selling interest, with prices currently balanced around congestion support at 1.1550. Daily readings have turned down and broader weekly charts are negative, highlighting room for further losses in the coming sessions. A break below 1.1550 will open up congestion around 1.1500. But a further close below the 1.1470~ monthly low of 5 November will turn sentiment negative and complete a multi-month distribution top beneath the 1.2083 current year high of 27 January. Focus will then turn to 1.1400. Meanwhile, a close back above congestion resistance at 1.1600 will help to stabilise price action and prompt fresh consolidation beneath congestion around 1.1650.