Chart EUR/USD Update: Leaning lower
Cautious trade has given way to a drift down to 1.1625~
| 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
08:25 BST - Cautious trade has given way to a drift down to 1.1625~, where unwinding oversold intraday studies are prompting short-term reactions. Overbought daily stochastics are unwinding and the daily Tension Indicator is coming under pressure, highlighting a deterioration in sentiment and room for further losses in the coming sessions. A break below congestion support at 1.1600 will add weight to sentiment and open up the 1.1528 low of 5 August and further congestion around 1.1500. However, oversold weekly stochastics are expected to limit any initial tests of this range in fresh consolidation. Meanwhile, resistance remains at congestion around 1.1700. A close above here, if seen, will open up 1.1750, where fresh selling interest is expected to appear.