Weekly Chart EUR/USD Update: Room for consolidation above fresh year low, before further losses unfold

Anticipated losses have reached critical support at the 1.1325 monthly low of 24 June and the 1.1355 Fibonacci retracement,

where short-term consolidation is appearing.

Weekly stochastics and the weekly Tension Indicator continue to track lower, however, pointing to a broadly bearish tone and room for still further losses into the coming week. A close beneath 1.1325/55 will add weight to already bearish sentiment and confirm continuation of losses from the 1.2085 current year high of 27 January. Focus will turn to congestion around 1.1250. Continuation down to the 1.1130 retracement cannot be ruled out, but by-then oversold weekly stochastics could limit any initial tests in short-covering/consolidation, before mixed/negative longer-term charts prompt still further losses.

Meanwhile, resistance is at congestion around 1.1400.

Oversold daily stochastics are edging higher, suggesting room for a test. But the bearish daily Tension Indicator and negative longer-term structure suggests any immediate tests could be limited in renewed selling interest/consolidation.

A close above here, if seen, will help to stabilise price action, and give way to consolidation beneath further congestion around 1.1500.