Chart EUR/USD Update: Room for higher in the coming sessions
The test of congestion around 1.0700 has given way to the anticipated break
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.0885 | * | 9 Apr (w) high | S1 | 1.0700 | * | congestion | |
R3 | 1.0850 | congestion | S2 | 1.0650 | congestion | |||
R2 | 1.0800 | * | congestion | S3 | 1.0600/10 | ** | congestion; 76.4% ret of Oct-Dec rally | |
R1 | 1.0750 | minor congestion | S4 | 1.0550 | * | congestion |
Asterisk denotes strength of level
08:30 BST - The test of congestion around 1.0700 has given way to the anticipated break, as intraday studies continue to rise, with prices currently trading around 1.0720. Daily stochastics and the daily Tension Indicator continue to rise, highlighting room for continuation towards 1.0750. However, negative weekly charts are expected to limit any further break in selling interest/consolidation beneath 1.0800. Meanwhile, a close back below 1.0700 will turn price action neutral once again and prompt fresh consolidation above 1.0650. A close below congestion at 1.0600 and the 1.0610 Fibonacci retracement is needed to turn price action negative and extend late-December losses towards 1.0550.