Chart EUR/USD Update: Cautious trade
Choppy trade is extending the sharp bounce from the 1.1660 low of 11 September
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.2000 | ** | historic congestion | S1 | 1.1700 | * | congestion | |
| R3 | 1.1900 | ** | historic congestion | S2 | 1.1660 | 11 Sep low | ||
| R2 | 1.1830 | ** | 1 Jul YTD high | S3 | 1.1600 | * | congestion range lows | |
| R1 | 1.1789 | * | 24 Jul (w) high | S4 | 1.1500 | ** | congestion |
*Asterisk denotes strength of level
08:25 BST - Choppy trade is extending the sharp bounce from the 1.1660 low of 11 September, with prices currently balanced around 1.1740. Mixed daily readings are showing early signs of improvement, suggesting room for a further move higher. But mixed weekly charts are expected to limit any initial gains in consolidation beneath strong resistance at the 1.1789 weekly high of 24 July. A close above critical resistance the 1.1830 current year high of 1 July is needed to turn sentiment positive and confirm continuation of September 2022 gains, initially towards historic congestion around 1.1900. Meanwhile, any fresh tests below congestion support at 1.1700 should give way to consolidation above the 1.1600 range lows.