Chart EUR/USD Update: Room for lower
Little change, as prices extend cautious trade following the test of congestion support at 1.0500
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0650 | break level | S1 | 1.0500 | * | congestion | ||
| 14 | 1.0630 | ** | 50% ret of Nov fall | S2 | 1.0460 | * | 2 Dec (w) low | |
| R2 | 1.0600/01 | ** | congestion; 16 Apr (m) low | S3 | 1.0400 | ** | congestion | |
| R1 | 1.0550 | * | congestion | S4 | 1.0331 | ** | 22 Nov YTD low |
Asterisk denotes strength of level
08:25 GMT - Little change, as prices extend cautious trade following the test of congestion support at 1.0500. Daily stochastics are turning down, unwinding negative divergence, and the rising daily Tension Indicator is flattening, suggesting a deterioration in sentiment and room for a fresh break beneath here towards the 1.0460 weekly low of 2 December. Further selling pressure will open up congestion around 1.0400, where rising weekly charts are expected to prompt fresh consolidation. Meanwhile, resistance remains at congestion around 1.0550. A close above here, if seen, will help to stabilise price action. But a further close above the 1.0600/30 area is needed to turn sentiment positive and confirm continuation of November gains.