Chart EUR/USD Update: Room for a corrective pullback
The anticipated test of congestion support has extended to 1.1475
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1700 | ** | break level | S1 | 1.1500 | * | congestion | |
| 14 | 1.1685 | ** | 76.4% ret of 2021-2022 fall | S2 | 1.1400 | * | congestion | |
| R2 | 1.1630 | ** | 12 Jun YTD high | S3 | 1.1357 | * | 4 Jun low | |
| R1 | 1.1600 | ** | congestion | S4 | 1.1300 | * | break level |
*Asterisk denotes strength of level
08:35 BST - The anticipated test of congestion support has extended to 1.1475, where unwinding oversold intraday studies are prompting a bounce back above 1.1500. Daily readings are bearish and weekly stochastics are also coming under pressure, highlighting room for further losses in the coming sessions. A close back below 1.1500 will open up congestion around 1.1400. But rising longer-term charts are expected to limit any deeper losses in renewed buying interest above the 1.1357 low of 4 June. Following corrective trade, fresh gains are looked for. Resistance remains at congestion around 1.1600. But a close above the 1.1630 current year high of 12 June is needed to turn sentiment positive and extend September 2022 gains towards the 1.1685 Fibonacci retracement and resistance at 1.1700. Overbought studies could prompt profit-taking within here.