Chart EUR/USD Update: Gains proving difficult to sustain
Anticipated minor gains have met selling interest beneath the 1.1835 high of 23 February
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2000 | ** | congestion | S1 | 1.1800 | * | congestion | |
| R3 | 1.1930~ | ** | 9-11 Feb (w) high | S2 | 1.1770 | ** | 61.8% ret of January rally | |
| R2 | 1.1900 | * | congestion | S3 | 1.1750 | ** | congestion | |
| R1 | 1.1850 | * | break level | S4 | 1.1695/00 | ** | 76.4% ret; congestion |
*Asterisk denotes strength of level
08:40 GMT - Anticipated minor gains have met selling interest beneath the 1.1835 high of 23 February, as overbought intraday studies unwind, with prices currently pressuring congestion support at 1.1800. A break will open up the 1.1770 Fibonacci retracement. But rising daily readings are expected to limit any initial tests in consolidation, before negative weekly charts extend losses still further. A close below congestion support at 1.1750 will turn sentiment negative and confirm continuation of January losses, as focus then turns to strong support at the 1.1695 retracement and congestion around 1.1700. Oversold daily stochastics could limit any initial tests in short-covering/consolidation. Meanwhile, resistance at 1.1850 should cap any immediate tests higher.