Chart EUR/USD Update: Limited corrective gains
Consolidation above the 1.1618 weekly low of 9 Jan has given way to a sharp bounce in USD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1815 | ** | 76.4% ret of Sep-Nov fall | S1 | 1.1650 | * | congestion | |
| R3 | 1.1800 | * | congestion | S2 | 1.1618 | 9 Jan (w) low | ||
| R2 | 1.1750 | * | congestion | S3 | 1.1600 | ** | congestion, 61.8% ret | |
| R1 | 1.1700 | * | congestion | S4 | 1.1550 | ** | 76.4% ret of Nov-Dec rally |
*Asterisk denotes strength of level
08:30 GMT - Consolidation above the 1.1618 weekly low of 9 Jan has given way to a sharp bounce in USD-driven trade, with the break back above 1.1650 turning sentiment neutral. Rising intraday studies and a tick higher in oversold daily stochastics highlight room for a test above here. But the negative daily Tension Indicator and bearish weekly charts should limit scope in renewed selling interest towards further congestion around 1.1750. Meanwhile, support remains at congestion around 1.1650. A later break beneath here will add weight to sentiment and open up a test of strong support at 1.1600. However, by-then oversold daily stochastics are expected to limit any initial tests in consolidation.