Weekly Chart EUR/USD Update: Leaning lower - sentiment and studies under pressure

Consolidation following the test of strong resistance at 1.1700, (congestion and 50% Fibonacci retracement), has given way to a pullback,

with prices currently consolidating the test of support at the 1.1565 Fibonacci retracement.

Oversold daily stochastics are flattening, suggesting room for further cautious trade, before the bearish daily Tension Indicator and unwinding overbought weekly stochastics prompt further losses. A break will add weight to sentiment and extend late-August losses below congestion support at 1.1550 towards strong support at further congestion around 1.1500 and the 1.1515 retracement.

However, any initial tests could be met in renewed consolidation consolidation around here, as the weekly Tension Indicator continues to rise,

Meanwhile, immediate resistance is at congestion around 1.1600.

A close above here would help to stabilise price action and prompt consolidation beneath strong resistance at 1.1700. A further close above here, if seen, would improve price action and extend gains from the 1.1325 current year low of 24 June towards strong resistance at the 1.1790 Fibonacci retracement and congestion around 1.1800.