Chart EUR/USD Update: Back at 1.1600 - room for lower
Consolidation around congestion resistance at 1.1700 has given way to a fall to congestion support at 1.1600
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | Jul-Sep 2021 break level | S1 | 1.1600 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1750 | * | break level | S3 | 1.1400 | ** | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1360 | ** | 61.8% ret of May-Jul rally |
*Asterisk denotes strength of level
08:25 BST - Consolidation around congestion resistance at 1.1700 has given way to a fall to congestion support at 1.1600, where mixed/negative intraday studies and flat daily stochastics are prompting short-term reactions. The daily Tension Indicator is under pressure, however, and broader weekly charts are also falling, suggesting room for further losses in the coming sessions. A break below 1.1600 will add weight to sentiment and open up the 1.1528 low of 5 August and further congestion around 1.1500. Still deeper losses cannot be ruled out. Meanwhile, resistance remains at congestion around 1.1700. A close above here, if seen, will once again open up 1.1750, where fresh selling interest is expected to appear.