Chart EUR/USD Update: Range trade - studies under pressure
Little change, as consolidation above 1.1800 gives way to a drift lower into fresh consolidation above support at the 1.1770 Fibonacci retracement
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1930~ | ** | 9-11 Feb (w) high | S1 | 1.1770 | ** | 61.8% ret of January rally | |
| R3 | 1.1900 | * | congestion | S2 | 1.1750 | ** | congestion | |
| R2 | 1.1850 | * | break level | S3 | 1.1695/00 | ** | 76.4% ret; congestion | |
| R1 | 1.1800 | * | congestion | S4 | 1.1650 | ** | congestion |
*Asterisk denotes strength of level
08:35 GMT - Little change, as consolidation above 1.1800 gives way to a drift lower into fresh consolidation above support at the 1.1770 Fibonacci retracement. Oversold daily stochastics are flattening, suggesting potential for further cautious trade above here. But the bearish daily Tension Indicator and negative weekly charts point to a later break towards congestion around 1.1750. A further close beneath here 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. Meanwhile, any fresh tests above congestion resistance at 1.1800 should give way to consolidation beneath 1.1850.