Chart EUR/USD Update: Smart bounce from fresh marginal year low
Consolidation has given way to a marginal fresh year low around 1.1110, before bouncing sharply to pressure 1.1200
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1325 | ** | 24 Jun (m) low | S1 | 1.1150 | congestion | ||
| R3 | 1.1270 | ** | 16 Oct (w) high | S2 | 1.1130 | ** | 50% ret of 2025-2026 rally | |
| R2 | 1.1250 | congestion tops | S3 | 1.1110/15 | ** | 14-29 Oct YTD low | ||
| R1 | 1.1200 | ** | break level | S4 | 1.1065 | ** | 12 May (m) low |
*Asterisk denotes strength of level
08:35 GMT - Consolidation has given way to a marginal fresh year low around 1.1110, before bouncing sharply to pressure 1.1200. Mixed intraday studies highlight potential for fresh consolidation around here, before improving daily readings prompt a break. A close above here will help to improve sentiment and open up strong resistance at congestion around 1.1250. Just higher is the 1.1270 weekly high of 16 October, where already overbought daily stochastics and mixed weekly charts should prompt profit-taking/consolidation. A close above here, however, will turn sentiment positive and extend gains towards the 1.1325 monthly low of 24 June, ahead of the 1.1340 Fibonacci retracement.
Meanwhile, support is raised to congestion around 1.1150. A close back beneath here would add weight to sentiment and open up strong support within the 1.1110/15 - 1.1130 range. A close beneath here would turn sentiment negative and extend January losses, initially to the 1.1065 monthly low of 12 May.