Published: 2025-07-22T07:41:02.000Z
Chart EUR/USD Update: Gains to remain limited - background studies under pressure
Senior Technical Strategist
3
The test of congestion resistance at 1.1700 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1830 | ** | 1 Jul YTD high | S1 | 1.1600 | * | congestion | |
| R3 | 1.1800 | * | congestion | S2 | 1.1540 | * | 38.2% ret of May-Jul rally | |
| R2 | 1.1750 | * | break level | S3 | 1.1500 | * | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1450 | ** | 38.2% ret of May-Jul rally |
*Asterisk denotes strength of level
08:30 BST - The test of congestion resistance at 1.1700 is giving way to consolidation, as positive intraday studies turn mixed. Oversold daily stochastics are unwinding, suggesting potential for a later test back above here. But the negative daily Tension Indicator and deteriorating weekly charts are expected to limit scope in renewed selling interest beneath 1.1750. Following cautious trade, price action is expected to turn down once again, with focus to turn to congestion support at 1.1600. A break beneath here will add weight to sentiment and extend July losses initially towards the 1.1540 Fibonacci retracement.