Chart EUR/USD Update: Consolidating test of 1.0735/55 - studies leaning lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0950 | congestion | S1 | 1.0755 | * | 6 Nov (w) high | ||
| R3 | 1.0900 | * | congestion | S2 | 1.0735 | ** | 50% ret of Oct-Nov rally | |
| R2 | 1.0850 | intraday pivot | S3 | 1.0700 | * | congestion | ||
| R1 | 1.0800 | * | congestion | S4 | 1.0665 | ** | 61.8% ret of Oct-Nov rally |
Asterisk denotes strength of level
09:10 GMT - The anticipated break below the 1.0755 weekly high of 6 November has bounced from just beneath further support at the 1.0735 Fibonacci retracement, as intraday studies turn higher and oversold daily stochastics flatten, with prices once again balanced above 1.0755. A minor test higher is possible, but the bearish daily Tension Indicator and mixed/negative weekly charts should prompt fresh selling interest towards congestion resistance at 1.0800. Following corrective trade, November losses are expected to continue. However, a close below 1.0735 is needed to turn sentiment negative and open up the 1.0665 retracement. Meanwhile, a close above 1.0800, if seen, would turn sentiment neutral and prompt renewed consolidation beneath 1.0850.