Chart EUR/USD Update: Extending late-June gains
Cautious trade has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1800 | ** | break level | S1 | 1.1620~ | * | 15 Jun (w) high | |
| R3 | 1.1750 | * | congestion | S2 | 1.1600 | * | congestion | |
| R2 | 1.1725 | ** | 76.4% ret of Apr-Jun fall | S3 | 1.1550 | * | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1500 | ** | congestion |
*Asterisk denotes strength of level
08:30 BST - Cautious trade has given way to anticipated gains, with steady buying interest approaching resistance at congestion around 1.1700 and the 1.1725 Fibonacci retracement. Flat overbought intraday studies and flattening overbought daily stochastics could limit any initial tests of this range in consolidation. However, the positive daily Tension Indicator and rising weekly charts point to a later break. A close above here will further improve sentiment and extend late-June gains initially towards congestion within the 1.1750 - 1.1800 range.
Meanwhile, support is raised to the 1.1620~ weekly high of 15 June and congestion around 1.1600. A close beneath here, if seen, will turn sentiment neutral and give way to consolidation within congestion above 1.1550.