Chart EUR/USD Update: Gains to remain limited
The anticipated break below 1.1600 has bounced smartly from 1.1575~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1800 | * | congestion | S1 | 1.1600 | ** | congestion | |
| R3 | 1.1750 | * | congestion | S2 | 1.1550 | ** | 76.4% ret of Nov-Dec rally | |
| R2 | 1.1700 | * | congestion | S3 | 1.1500 | ** | congestion | |
| R1 | 1.1650 | * | congestion | S4 | 1.1470~ | ** | 5 Nov (m) low |
*Asterisk denotes strength of level
08:35 GMT - The anticipated break below 1.1600 has bounced smartly from 1.1575~, with prices breaking back above 1.1600 to currently trade around 1.1625. Rising intraday studies and flattening oversold daily stochastics highlight potential for a test of congestion resistance at 1.1650. But the bearish daily Tension Indicator and negative weekly charts should limit any break in renewed selling interest beneath further congestion around 1.1700. Following corrective trade, fresh losses are looked for. A close back below congestion support at 1.1600 will add weight to sentiment and extend late-December losses towards support at the 1.1550 Fibonacci retracement. Oversold daily stochastics could limit any initial tests in short-covering/consolidation.