Chart EUR/USD Update: Leaning lower
Cautious trade is giving way to a further drift lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | * | congestion | S1 | 1.1600 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1540 | * | 38.2% ret of May-Jul rally | |
| R2 | 1.1800 | * | congestion | S3 | 1.1500 | * | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1450 | ** | 50% ret of May-Jul rally |
*Asterisk denotes strength of level
08:35 BST - Cautious trade is giving way to a further drift lower, with the break below 1.1700 currently trading around 1.1685. Intraday studies are mixed, suggesting room for further sideways trade, before negative daily readings and deteriorating weekly charts extend July losses still further. Later focus is expected to turn to congestion support at 1.1600, with a break beneath here opening up the 1.1540 Fibonacci retracement. Already oversold daily stochastics could limit any initial tests of here in consolidation. Meanwhile, a close back above congestion resistance at 1.1700 would help to stabilise price action once again and give way to consolidation beneath congestion resistance at 1.1800.