Chart EUR/USD Update: Edging higher
Cautious trade following the test of congestion support at 1.1600 has given way to fresh gains
| 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
08:35 BST - Cautious trade following the test of congestion support at 1.1600 has given way to fresh gains, as intraday studies turn higher with prices currently trading just above congestion resistance at 1.1700. Daily stochastics and the daily Tension Indicator have also ticked higher, highlighting room for further strength in the coming sessions, with resistance at 1.1750 to attract. However, broader weekly charts continue to fall, suggesting any immediate break beyond here should be limited in consolidation/profit-taking beneath critical resistance at the 1.1830 current year high of 1 July. A close above here would turn sentiment positive and confirm continuation of September 2022 gains. Meanwhile, support remains at 1.1600 and is expected to underpin any immediate setbacks.