Chart EUR/USD Update: Sharp reversal towards current year highs
Consolidation following the test of the 1.1446 weekly low of 19 June has given way to a sharp USD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1700 | * | congestion | S1 | 1.1500 | * | congestion | |
| R3 | 1.1685 | ** | 76.4% ret of 2021-2022 fall | S2 | 1.1446 | * | 19 Jun (w) low | |
| R2 | 1.1630 | ** | 12 Jun YTD high | S3 | 1.1400 | * | congestion | |
| R1 | 1.1600 | ** | congestion | S4 | 1.1357 | * | 4 Jun low |
*Asterisk denotes strength of level
08:30 BST - Consolidation following the test of the 1.1446 weekly low of 19 June has given way to a sharp USD-driven bounce, with prices currently pressuring congestion resistance at 1.1600. Overbought intraday studies flattening, suggesting potential for consolidation around here. But daily stochastics have turned higher and the daily Tension Indicator is also rising, suggesting room for further strength in the coming sessions. A close above the 1.1630 current year high of 12 June will turn sentiment positive and confirm continuation of January gains, initially to strong resistance at the 1.1685 Fibonacci retracement. Meanwhile, support is raised to congestion around 1.1500. An unexpected close beneath here will turn sentiment neutral and prompt consolidation above 1.1400.