Chart EUR/USD Update: Cautious trade - any gains to remain limited
Little change, as prices extend cautious trade within the 1.1520 - 1.1550 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1700/10 | * | congestion; 21 Aug (m) high | S1 | 1.1520 | ** | 50% ret of Jun-Aug rally | |
| R3 | 1.1650 | break level | S2 | 1.1500 | * | congestion | ||
| R2 | 1.1600 | * | congestion | S3 | 1.1475 | ** | 61.8% ret of Jun-Aug rally | |
| R1 | 1.1550 | * | congestion | S4 | 1.1420 | ** | 76.4% ret of Jun-Aug rally |
*Asterisk denotes strength of level
08:35 BST - Little change, as prices extend cautious trade within the 1.1520 - 1.1550 range. Intraday studies are rising and oversold daily stochastics are flattening, suggesting room for a test above congestion resistance at 1.1550. But the bearish daily Tension Indicator and deteriorating weekly charts should limit scope in renewed consolidation/selling interest beneath further congestion around 1.1600.
Following cautious/corrective trade, fresh losses are looked for. A later break below the 1.1520 Fibonacci retracement will add weight to sentiment and extend late-August losses below congestion support at 1.1500 towards the 1.1475 retracement. However, already oversold daily stochastics could limit any initial tests in consolidation, before deteriorating weekly charts prompt further losses.