Chart EUR/USD Update: Limited tests lower
Cautious trade is giving way to a drift lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1800 | ** | break level | S1 | 1.1620~ | * | 15 Jun (w) high | |
| R3 | 1.1750 | * | congestion | S2 | 1.1600 | * | congestion | |
| R2 | 1.1725 | ** | 76.4% ret of Apr-Jun fall | S3 | 1.1550 | * | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1450 | congestion |
*Asterisk denotes strength of level
08:40 BST - Cautious trade is giving way to a drift lower, with prices currently trading around 1.1655. Overbought daily stochastics are unwinding and the flat daily Tension Indicator is showing early signs of turning down, suggesting room for continuation down to support at congestion around 1.1600 and the 1.1620~ weekly high of 15 June. However, rising weekly charts should limit any tests in renewed buying interest.
Following cautious/corrective trade, fresh gains are looked for. Resistance remains at congestion around 1.1700 and extends to the 1.1725 Fibonacci retracement. A close above here is needed to turn sentiment positive and extend late-June gains initially towards congestion within the 1.1750 - 1.1800 range.