Chart EUR/USD Update: Consolidating - room for a minor test higher
The anticipated test of resistance at the 1.1650 range lows has given way to further consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1750 | * | congestion | S1 | 1.1600 | * | congestion | |
| R3 | 1.1725 | ** | 76.4% ret of Apr-Jun fall | S2 | 1.1565 | * | 38.2% ret of Jun-Aug rally | |
| R2 | 1.1700/10 | * | congestion; 21 Aug (m) high | S3 | 1.1550 | * | congestion | |
| R1 | 1.1650 | recent range lows | S4 | 1.1515 | * | 50% ret of Jun-Aug rally |
*Asterisk denotes strength of level
08:35 BST - The anticipated test of resistance at the 1.1650 range lows has given way to further consolidation, as intraday studies turn mixed, with prices currently balanced around 1.1640. Oversold daily stochastics are unwinding, highlighting room for a test above here. But the flat daily Tension Indicator and mixed weekly charts should limit scope in renewed selling interest/consolidation beneath strong resistance at 1.1700/10 and the 1.1725 Fibonacci retracement.
Meanwhile, support remains at congestion around 1.1600, and should underpin any immediate setbacks. A close beneath here would add weight to sentiment and open up stronger support at the 1.1565 Fibonacci retracement.