Weekly Chart EUR/USD Update: Consolidating sharp losses - studies deteriorating

Anticipated minor tests higher have not been seen, as consolidation gave way to sharp losses in global JPY-driven trade.

Prices have reached 1.1455, where a tick higher in oversold daily stochastics is prompting short-covering and a minor bounce.

Focus is turning to strong resistance at 1.1500. But the bearish daily Tension Indicator should limit any break above here in fresh range extension beneath 1.1550, before fresh losses unfold. A close above here, however, will help to stabilise price action and open up a test of 1.1600.

Following cautious/corrective trade, lower levels are looked for as weekly stochastics continue to fall and the rising weekly Tension Indicator shows signs of flattening.

Support is at the 1.1420 Fibonacci retracement. A close beneath here will add weight to sentiment and open up critical support at the 1.1325 current year low of 24 June. Continuation beneath here will add weight to sentiment and extend January losses  towards the 1.1130 Fibonacci retracement.