Chart EUR/USD Update: Potential for a minor test lower
Still little change, as mixed intraday studies keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0600 | * | break level | S1 | 1.0450 | congestion | ||
| 14 | 1.0570 | ** | 38.2% ret of Sep-Jan fall | S2 | 1.0400 | ** | congestion | |
| R2 | 1.0533 | ** | 27 Jan YTD high | S3 | 1.0350 | * | break level | |
| R1 | 1.0500 | * | break level | S4 | 1.0300 | congestion |
Asterisk denotes strength of level
08:30 GMT - Still little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation around congestion support at 1.0450. Overbought daily stochastics continue to turn down and the positive daily Tension Indicator is flattening, suggesting room for a test beneath here. A break will open up further congestion around 1.0400, but positive weekly charts are expected to prompt fresh buying interest towards here. Following corrective trade, higher levels are looked for. However, a close above the 1.0533 current year high of 27 January is needed to turn sentiment positive and confirm continuation of January gains, initially to the 1.0570 Fibonacci retracement.