Chart EUR/USD Update: Consolidating test of 1.1800/15 - potential for a minor test lower
Still little change
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1919 | ** | 17 Sep YTD high | S1 | 1.1750 | * | congestion | |
| R3 | 1.1848 | 18 Sep high | S2 | 1.1700 | * | congestion | ||
| R2 | 1.1815 | ** | 76.4% ret of Sep-Nov fall | S3 | 1.1650 | * | congestion | |
| R1 | 1.1800 | * | congestion | S4 | 1.1600 | * | congestion |
*Asterisk denotes strength of level
08:50 GMT - Still little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation within the 1.1750 - 1.1800/15 range. Daily stochastics are turning down, unwinding minor negative divergence, and the daily Tension Indicator is also coming under pressure, highlighting room for a drift lower. A break below congestion support at 1.1750 will open up further congestion around 1.1700. But rising weekly charts are expected to prompt renewed buying interest/consolidation towards here. Following cautious trade, fresh gains are looked for. However, a close above congestion resistance at 1.1800 and the 1.1815 Fibonacci retracement is needed to improve price action and extend November gains initially to the 1.1848 high of 18 September.