Chart EUR/USD Update: Room for lower
Cautious trade is giving way to the anticipated drift lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2082 | ** | 27 Jan YTD high | S1 | 1.1838 | * | 4 Feb high | |
| R3 | 1.2000/20 | ** | figure; 38.2% ret | S2 | 1.1800 | * | congestion | |
| R2 | 1.1950 | break level | S3 | 1.1770 | ** | 61.8% ret of January rally | ||
| R1 | 1.1900 | * | congestion | S4 | 1.1750 | ** | congestion |
*Asterisk denotes strength of level
08:30 GMT - Cautious trade is giving way to the anticipated drift lower, as intraday studies turn down, with prices currently pressuring support at 1.1838. Daily stochastics and the daily Tension Indicator are also under pressure, highlighting room for a break towards congestion around 1.1800. Broader weekly charts are turning mixed/negative. But a close below the 1.1770 Fibonacci retracement would confirm continuation of late-January losses and open up stronger support at 1.1695/00, where by-then oversold daily stochastics could prompt short-covering/consolidation. Meanwhile, resistance remains up to congestion around 1.1900 and should cap any immediate tests higher.