Chart EUR/USD Update: Consolidating - studies under pressure
The anticipated break below 1.1500 has reached 1.1475~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1700 | * | congestion | S1 | 1.1475~ | 4 Nov low | ||
| R3 | 1.1600 | * | congestion | S2 | 1.1400 | ** | cong, Jul-Aug (m) lows | |
| R2 | 1.1550 | * | break level | S3 | 1.1350 | * | congestion | |
| R1 | 1.1500 | ** | congestion | S4 | 1.1250 | ** | 38.2% ret of Jan-Sep rally |
*Asterisk denotes strength of level
08:30 GMT - The anticipated break below 1.1500 has reached 1.1475~, where rising intraday studies and flattening oversold daily stochastics are prompting a minor drift higher. A test back above congestion resistance at 1.1500 cannot be ruled out. But the negative daily Tension Indicator and bearish weekly charts should limit scope in renewed selling interest beneath resistance at the 1.1550 break level. Following cautious trade, September losses are expected to continue. A break below 1.1475 will open up strong support at 1.1400. Just lower is congestion around 1.1350. Already oversold daily stochastics could limit any initial tests of this range in short-covering/consolidation.