Chart EUR/USD Update: Extending losses
Anticipated losses have reached 1.1540
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | historic congestion | S1 | 1.1500 | ** | congestion | |
| R3 | 1.1800 | * | congestion | S2 | 1.1400 | ** | cong, Jul-Aug (m) lows | |
| R2 | 1.1700 | * | congestion | S3 | 1.1350 | * | congestion | |
| R1 | 1.1600 | ** | congestion | S4 | 1.1300 | ** | congestion |
*Asterisk denotes strength of level
08:30 BST - Anticipated losses have reached 1.1540, where mixed intraday studies and flat oversold daily stochastics are prompting short-term reactions. The daily Tension Indicator is under pressure, however, and broader weekly charts are also negative, highlighting room for further losses in the coming sessions. Focus is turning to congestion around 1.1500. But already oversold weekly stochastics are expected to limit any initial break in short-covering/consolidation above critical support at 1.1400. Meanwhile, resistance is lowered to congestion around 1.1600. A close back above here would help to stabilise price action and prompt consolidation beneath further congestion around 1.1700.