Chart EUR/USD Update: Consolidating
The pullback from the 1.1560 high of 3 August has reached congestion support at 1.1500
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1620~ | * | 15 Jun (w) high | S1 | 1.1500 | ** | congestion | |
| R3 | 1.1600 | * | congestion | S2 | 1.1482 | ** | 15 Jul (w) high | |
| R2 | 1.1585 | ** | 50% ret of Apr-Jun fall | S3 | 1.1450 | * | congestion | |
| R1 | 1.1560~ | 3 Aug high | S4 | 1.1400 | * | congestion |
*Asterisk denotes strength of level
08:35 BST - The pullback from the 1.1560 high of 3 August has reached congestion support at 1.1500, where flat oversold intraday studies are prompting consolidation. Overbought daily stochastics are ticking lower, suggesting room for a break to the 1.1482 weekly high of 15 July. But the positive daily Tension Indicator and improving weekly charts should limit any deeper losses in renewed buying interest above congestion support at 1.1450. Following cautious/corrective trade, fresh gains are looked for. A later break above 1.1560 will improve sentiment and extend late-June gains initially towards strong resistance at the 1.1585 Fibonacci retracement and congestion around 1.1600.