Chart EUR/USD Update: Poised for fresh gains
Cautious trade beneath 1.1200 has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1340 | ** | 38.2% ret of Oct-Aug fall | S1 | 1.1200 | ** | break level | |
| R3 | 1.1325 | ** | 24 Jun (m) low | S2 | 1.1150 | congestion | ||
| R2 | 1.1270 | ** | 16 Oct (w) high | S3 | 1.1130 | ** | 50% ret of 2025-2026 rally | |
| R1 | 1.1250 | congestion tops | S4 | 1.1110/15 | ** | 14-29 Oct YTD low |
*Asterisk denotes strength of level
08:30 GMT - Cautious trade beneath 1.1200 has given way to anticipated gains, with prices reaching resistance within congestion around 1.1250 and the 1.1270 weekly high of 16 October, before settling into consolidation beneath here. Daily readings continue to improve and oversold weekly stochastics are ticking higher, suggesting an improvement in sentiment and room for further gains in the coming sessions. A break above here will improve sentiment and extend mid-October gains initially to the 1.1325 monthly high of 24 June. Just beyond here is the 1.1340 Fibonacci retracement. But already overbought daily stochastics and the bearish weekly Tension Indicator should limit any initial tests of this range in profit-taking/consolidation.
Meanwhile, support is raised to 1.1200. A close back beneath here, if seen, will stabilise price action and prompt fresh consolidation above the 1.1130 Fibonacci retracement and congestion around 1.1150.