Chart AUD/USD Update: Immediate gains to remain limited
Consolidation has given way to a fresh break higher
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.6675 | ** | 61.8% ret of Dec-Apr fall | S1 | 0.6560 | * | break level | |
R3 | 0.6668 | ** | 8 Mar (m) high | S2 | 0.6500 | * | congestion | |
R2 | 0.6650 | * | congestion | S3 | 0.6450 | congestion | ||
R1 | 0.6600 | * | congestion | S4 | 0.6400/10 | ** | congestion; 76.4% ret of Oct-Dec rally | |
Asterisk denotes strength of level
14:35 BST - Consolidation has given way to a fresh break higher, as intraday studies rise, with prices currently pressuring congestion resistance at 0.6600. A test above here cannot be ruled out, but unwinding overbought daily stochastics and the flattening daily Tension Indicator are expected to limit immediate scope in selling interest beneath further congestion around 0.6650. Broader weekly charts are positive, but a close above 0.6668/75 is needed to confirm continuation of mid-April gains and open up extension towards the 0.6750 Fibonacci retracement. Meanwhile, any tests below support at 0.6560 should give way to buying interest/consolidation above congestion around 0.6500.