Chart EUR/USD Update: Under pressure
Consolidation above 1.1750 has given way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1848 | 18 Sep high | S1 | 1.1700 | * | congestion | ||
| R3 | 1.1815 | ** | 76.4% ret of Sep-Nov fall | S2 | 1.1680 | * | 38.2% ret of Nov-Dec rally | |
| R2 | 1.1800 | * | congestion | S3 | 1.1650 | * | congestion | |
| R1 | 1.1750 | * | congestion | S4 | 1.1640 | * | 50% ret of Nov-Dec rally |
*Asterisk denotes strength of level
08:25 GMT - Consolidation above 1.1750 has given way to anticipated losses, with prices currently trading around 1.1725. Daily readings continue to fall, highlighting room for a test of congestion support at 1.1700. But mixed/positive weekly charts are expected to limit any initial break beneath here in fresh consolidation above the 1.1680 Fibonacci retracement. A close beneath here, however, will add weight to sentiment and extend late-December losses towards 1.1640/50. Meanwhile, resistance is lowered to congestion around 1.1750, and should cap any immediate tests higher. A close above here, if seen, will help to stabilise price action and prompt fresh consolidation beneath strong resistance at 1.1800/15.