Chart EUR/USD Update: Extending July losses
Anticipated losses are extending, with the break below 1.1600 adding weight to sentiment
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1800 | * | congestion | S1 | 1.1540 | * | 38.2% ret of May-Jul rally | |
| R3 | 1.1750 | * | break level | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1700 | * | congestion | S3 | 1.1450 | ** | 50% ret of May-Jul rally | |
| R1 | 1.1600 | * | congestion | S4 | 1.1400 | ** | congestion |
*Asterisk denotes strength of level
08:30 BST - Anticipated losses are extending, with the break below 1.1600 adding weight to sentiment and prompting a test of support at the 1.1540 Fibonacci retracement. Intraday studies are oversold, suggesting potential for short-term consolidation around here. But daily readings are bearish and broader weekly charts are under pressure, highlighting room for still further losses in the coming sessions. A break beneath here will extend July losses towards congestion around 1.1500. Beneath here is the 1.1450 retracement. Meanwhile, resistance is lowered to congestion around 1.1600. A close above here would help to stabilise price action and prompt consolidation beneath further congestion around 1.1700.