Chart EUR/USD Update: Cautious trade
Little change, as prices extend cautious trade above congestion support at 1.1600
| 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 | * | congestion | S3 | 1.1550 | * | congestion | |
| R1 | 1.1650 | recent range lows | S4 | 1.1515 | * | 50% ret of Jun-Aug rally |
*Asterisk denotes strength of level
08:25 BST - Little change, as prices extend cautious trade above congestion support at 1.1600. Intraday studies are leaning lower, suggesting room for a retest of 1.1600. But oversold daily stochastics are ticking higher, suggesting any immediate tests could give way to fresh consolidation, before the bearish daily Tension Indicator and mixed/negative weekly charts prompt further losses. A break below 1.1600 will add weight to sentiment. But a further close below the 1.1565 Fibonacci retracement is needed to turn sentiment negative and extend late-August losses towards congestion around 1.1550. Already oversold daily stochastics could limit any initial tests in fresh consolidation.
Meanwhile, resistance remains up to 1.1650 and should cap any immediate tests higher.