Chart EUR/USD Update: Steady bounce back into consolidation
The anticipated break below support at the 1.1680 Fibonacci retracement and congestion around 1.1700 has bounced smartly from 1.1660
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1848 | 18 Sep high | S1 | 1.1700 | * | congestion | ||
| R3 | 1.1815 | ** | 76.4% ret of Sep-Nov fall | S2 | 1.1680 | * | 38.2% ret of Nov-Dec rally | |
| R2 | 1.1800 | * | congestion | S3 | 1.1650 | * | congestion | |
| R1 | 1.1750 | * | congestion | S4 | 1.1640 | * | 50% ret of Nov-Dec rally |
*Asterisk denotes strength of level
08:25 GMT - The anticipated break below support at the 1.1680 Fibonacci retracement and congestion around 1.1700 has bounced smartly from 1.1660, as intraday studies turn higher, with steady gains giving way to consolidation around 1.1725. Oversold daily stochastics are flattening, suggesting room for continuation towards congestion resistance at 1.1750. But the negative daily Tension Indicator is expected to limit any initial tests in further consolidation, before improving weekly charts prompt a break and open up stronger resistance at congestion around 1.1800 and the 1.1815 Fibonacci retracement. (A close above here will turn sentiment positive and extend November gains towards 1.1850~.) Meanwhile, a close below 1.1680/00, if seen, will add weight to sentiment and extend losses towards 1.1640/50, where renewed buying interest is expected to appear.