Chart EUR/USD Update: Downside to remain limited
Little change, as prices extend cautious trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0700 | ** | 61.8% ret of Nov fall | S1 | 1.0550 | * | congestion | |
| 14 | 1.0650 | break level | S2 | 1.0500 | * | congestion | ||
| R2 | 1.0630 | ** | 50% ret of Nov fall | S3 | 1.0400 | ** | congestion | |
| R1 | 1.0600/01 | ** | congestion; 16 Apr (m) low | S4 | 1.0331 | ** | 22 Nov YTD low |
Asterisk denotes strength of level
08:25 GMT - Little change, as prices extend cautious trade. A minor drift lower is developing, as both intraday studies and overbought daily stochastics turn down, with prices currently pressuring congestion support at 1.0550. A break will open up 1.0500, but the rising daily Tension Indicator and improving weekly charts should prompt fresh buying interest towards here. A close below 1.0500, however, would turn sentiment negative and extend losses towards 1.0400. Following cautious trade, fresh gains are looked for. Resistance remains at 1.0600/01 and extends to the 1.0630 Fibonacci retracement. A close above 1.0630 is needed to turn sentiment positive and extend November gains beyond the 1.0650 break level towards the 1.0700 retracement.