Chart EUR/USD Update: Range extension - background studies under pressure
The anticipated break below 1.1600 has bounced from 1.1575~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | Jul-Sep 2021 break level | S1 | 1.1600 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1750 | * | break level | S3 | 1.1400 | ** | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1360 | ** | 61.8% ret of May-Jul rally |
*Asterisk denotes strength of level
08:30 BST - The anticipated break below 1.1600 has bounced from 1.1575~, as oversold intraday studies unwind, with prices currently balanced in cautious trade around 1.1635. Negative daily stochastics are flattening, suggesting potential for further tests higher. But the bearish daily Tension Indicator and negative weekly charts are expected to limit scope in renewed selling interest/consolidation beneath congestion resistance at 1.1700. Following cautious trade, fresh losses are looked for. A later break back below congestion support at 1.1600 will add weight to sentiment and open up the 1.1528 low of 5 August and further congestion around 1.1500. Still deeper losses cannot be ruled out.