Chart EUR/USD Update: Consolidating test of 1.1600 - studies under pressure
Cautious trade beneath congestion resistance at 1.1700 has given way to a sharp pullback to congestion support at 1.1600
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1830 | ** | 1 Jul YTD high | S1 | 1.1600 | * | congestion | |
| R3 | 1.1800 | * | congestion | S2 | 1.1540 | * | 38.2% ret of May-Jul rally | |
| R2 | 1.1750 | * | break level | S3 | 1.1500 | * | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1450 | ** | 50% ret of May-Jul rally |
*Asterisk denotes strength of level
08:25 BST - Cautious trade beneath congestion resistance at 1.1700 has given way to a sharp pullback to congestion support at 1.1600. Oversold intraday studies are unwinding and oversold daily stochastics are flat, prompting consolidation above here. But the negative daily Tension Indicator and deteriorating weekly charts are expected to prompt still further losses. A later break below 1.1600 will add weight to sentiment and extend July losses towards the 1.1540 Fibonacci retracement. Already oversold daily stochastics could limit any initial tests of here in consolidation, before further losses unfold. Meanwhile, resistance remains at 1.1700 and should continue to cap any immediate tests higher.