Chart EUR/USD Update: Cautious trade - potential for a test above 1.1700
The pullback following the anticipated test of congestion resistance at 1.1700 has bounced from just above congestion support at 1.1600
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | Jul-Sep 2021 break level | S1 | 1.1600 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1750 | * | break level | S3 | 1.1400 | ** | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1360 | ** | 61.8% ret of May-Jul rally |
*Asterisk denotes strength of level
08:35 BST - The pullback following the anticipated test of congestion resistance at 1.1700 has bounced from just above congestion support at 1.1600, with prices currently trading around 1.1665. Intraday studies continue to point lower, suggesting room for a fresh test lower. But rising daily stochastics and the positive daily Tension Indicator should limit scope in renewed buying interest above 1.1600. In the coming sessions, cautious trade is expected to give way to a break above 1.1700. But negative weekly charts should limit initial scope in renewed selling interest/consolidation beneath 1.1750. Critical resistance is at the 1.1830 current year high of 1 July. A close above here would turn sentiment positive and confirm continuation of September 2022 gains. Meanwhile, a close below 1.1600 would turn sentiment neutral and prompt consolidation above further congestion around 1.1500.