Chart EUR/USD Update: Consolidating - daily studies turning down
Little change, as mixed intraday studies keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1600 | ** | congestion | S1 | 1.1400 | * | congestion | |
| 14 | 1.1573 | ** | 21 Apr YTD high | S2 | 1.1300 | * | break level | |
| R2 | 1.1500 | * | congestion | S3 | 1.1200 | * | congestion | |
| R1 | 1.1455 | 3 Jun high | S4 | 1.1130 | * | 16 May low |
*Asterisk denotes strength of level
08:30 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation above congestion support at 1.1400. A test of the 1.1455 high of 3 June cannot be ruled out. But overbought daily stochastics are turning down, unwinding negative divergence, and the daily Tension Indicator is flat, suggesting difficulty sustaining any immediate break above here. In the coming sessions, fresh tests lower are looked for. But mixed/positive weekly charts are expected to limit scope in renewed buying interest towards 1.1300. Following cautious trade, fresh gains are looked for. A later break above 1.1455 will improve sentiment and open up congestion resistance at 1.1500. But a close above the 1.1573 current year high of 21 April will confirm continuation of September 2022 gains, and initially open up congestion around 1.1600 and the 1.1615 monthly high of November 2021.