Chart EUR/USD Update: Consolidating - fresh downside pressure appearing
Still little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation within the broad 1.1450 - 1.1500 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1650 | break level | S1 | 1.1450 | congestion | |||
| R3 | 1.1600 | * | congestion | S2 | 1.1420 | ** | 76.4% ret of Jun-Aug rally | |
| R2 | 1.1550 | * | congestion | S3 | 1.1400 | ** | congestion | |
| R1 | 1.1500 | * | congestion | S4 | 1.1325 | ** | 24 Jun YTD low |
*Asterisk denotes strength of level
08:25 BST - Still little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation within the broad 1.1450 - 1.1500 range. Oversold daily stochastics are turning down and both the daily Tension Indicator and broader weekly charts are bearish, highlighting room for fresh losses in the coming sessions. A later close below congestion support at 1.1450 will add weight to sentiment and extend late-August losses towards the 1.1420 Fibonacci retracement and congestion around 1.1400. Already oversold daily stochastics could limit any initial tests in fresh short-covering/consolidation, before further losses are seen.
Meanwhile, resistance remains up to congestion around 1.1500. An unexpected close above here will help to stabilise price action and prompt fresh consolidation beneath further congestion around 1.1550.