Chart EUR/USD Update: Room for lower
Cautious trade around 1.1600 has given way to anticipated selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1725 | ** | 76.4% ret of Apr-Jun fall | S1 | 1.1565 | * | 38.2% ret of Jun-Aug rally | |
| R3 | 1.1700/10 | * | congestion; 21 Aug (m) high | S2 | 1.1550 | * | congestion | |
| R2 | 1.1650 | recent range highs | S3 | 1.1515 | ** | 50% ret of Jun-Aug rally | ||
| R1 | 1.1600 | * | congestion | S4 | 1.1500 | * | congestion |
*Asterisk denotes strength of level
08:25 BST - Cautious trade around 1.1600 has given way to anticipated selling interest, with prices currently pressuring support at the further congestion around 1.1550 and the 1.1565 Fibonacci retracement. Both intraday and daily studies are under fresh pressure, highlighting a deterioration in sentiment and room for deeper losses in the coming sessions. A close beneath here will add weight to sentiment and extend late-August losses towards further congestion around 1.1500 and the 1.1515 retracement. However, already oversold daily stochastics could limit any initial tests in consolidation, before deteriorating weekly charts prompt further losses.
Meanwhile, resistance is lowered to congestion around 1.1600. A close above here, if seen, will help to stabilise price action and prompt fresh range extension beneath 1.1650.