Chart EUR/USD Update: Limited tests higher
Consolidation following the test of support within congestion around 1.1750 and the 1.1770 Fibonacci retracement has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1950 | break level | S1 | 1.1800 | * | congestion | ||
| R3 | 1.1930~ | ** | 9-11 Feb (w) high | S2 | 1.1770 | ** | 61.8% ret of January rally | |
| R2 | 1.1900 | * | congestion | S3 | 1.1750 | ** | congestion | |
| R1 | 1.1850 | * | break level | S4 | 1.1695/00 | ** | 76.4% ret; congestion |
*Asterisk denotes strength of level
08:35 GMT - Consolidation following the test of support within congestion around 1.1750 and the 1.1770 Fibonacci retracement has given way to a bounce, with prices currently balanced in cautious trade above 1.1800. Oversold daily stochastics are ticking higher, suggesting potential for continuation higher. But the negative daily Tension Indicator and deteriorating weekly charts should limit scope in renewed selling interest towards 1.1850. Following cautious/corrective trade, fresh losses are looked for. A later close below 1.1750/70 will add weight to sentiment and extend January losses towards strong support at the 1.1695 retracement and congestion around 1.1700. Oversold daily stochastics could limit any initial tests in short-covering/consolidation.