Published: 2024-05-08T07:41:01.000Z
Chart EUR/USD Update: Drifting lower
Senior Technical Strategist
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Cautious trade is giving way to the anticipated drift lower
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.0980 | ** | 8 Mar (m) high | S1 | 1.0750 | * | break level | |
R3 | 1.0885/00 | ** | 9 Apr (m) high; congestion | S2 | 1.0700 | * | congestion | |
R2 | 1.0850 | congestion | S3 | 1.0650 | congestion | |||
R1 | 1.0800 | * | congestion | S4 | 1.0600/10 | ** | congestion; 76.4% ret of Oct-Dec rally |
Asterisk denotes strength of level
08:30 BST - Cautious trade is giving way to the anticipated drift lower, with prices currently trading just below support at 1.0750. Overbought daily stochastics are unwinding, suggesting potential for further losses towards congestion around 1.0700. However, the rising daily Tension Indicator and improving weekly charts are expected to prompt fresh consolidation around here. Meanwhile, resistance remains at congestion around 1.0800. A later close above here will improve price action and extend April gains initially to congestion around 1.0850.