Chart EUR/USD Update: Corrective bounce
The anticipated bounce from strong support at the 1.0496 current year low of 14 November and congestion around 1.0500 is meeting expected selling interest around 1.0600/01
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0800 | * | congestion | S1 | 1.0550 | * | congestion | |
| 14 | 1.0700 | * | congestion | S2 | 1.0496/00 | ** | 14 Nov YTD low; cong | |
| R2 | 1.0650 | break level | S3 | 1.0448 | ** | 3 Oct 2023 (y) low | ||
| R1 | 1.0600/01 | ** | congestion; 16 Apr (m) low | S4 | 1.0393/00 | ** | December 2022 low; cong |
Asterisk denotes strength of level
08:25 GMT - The anticipated bounce from strong support at the 1.0496 current year low of 14 November and congestion around 1.0500 is meeting expected selling interest around 1.0600/01, as overbought intraday studies unwind, with prices currently trading around 1.0580. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting room for a test above here. Focus will then turn to the 1.0650 break level, but negative weekly charts should limit any further strength in renewed selling interest towards 1.0700. Meanwhile, support is raised to congestion around 1.0550. But a close below 1.0496/00 is needed to turn sentiment negative once again and extend September losses towards the 1.0448 year low of 3 October 2023, where oversold weekly stochastics could prompt short-covering/consolidation.