Chart EUR/USD Update: Sharp USD-driven bounce
Consolidation above congestion support at 1.1400 has given way to a sharp USD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1830 | ** | 1 Jul YTD high | S1 | 1.1500 | ** | congestion | |
| R3 | 1.1750 | * | break level | S2 | 1.1400 | ** | congestion | |
| R2 | 1.1700 | * | congestion | S3 | 1.1360 | ** | 61.8% ret of May-Jul rally | |
| R1 | 1.1600 | * | congestion | S4 | 1.1300 | * | congestion |
*Asterisk denotes strength of level
15:15 BST - Consolidation above congestion support at 1.1400 has given way to a sharp USD-driven bounce, with the break above 1.1500 turning sentiment neutral. Intraday studies are rising and oversold daily stochastics are flattening, highlighting potential for a test of congestion resistance at 1.1600. But the negative daily Tension Indicator and bearish weekly charts are expected to limit scope in renewed selling interest beneath further congestion around 1.1700. Meanwhile, support is raised to congestion around 1.1500. But a close below 1.1400 is needed to turn sentiment negative and extend July losses initially to the 1.1360 Fibonacci retracement. A further close beneath here will open up 1.1300.