FX July 05, 2021 / 07:30 am UTC

Chart EUR/USD Update: Sharp bounce from above 1.1800

By Mike Macdonald


R41.2000*break level
S11.1800/07*break level;
2 Jul (w) low
R31.1970/75*23-25 Jun highs

intraday congestion
intraday cong
S31.1737*5 Apr (w) low
R11.1900*break level
S41.1700/04**38.2% ret; March low

Asterisk denotes strength of level

08:20 BST - Consolidation around congestion support at 1.1800 has given way to a steady bounce to 1.1875, where overbought intraday studies are prompting fresh consolidation. Rising daily stochastics are showing signs of positive divergence, and the flat daily Tension Indicator is flattening, pointing to a minor improvement in sentiment and scope for further gains in the coming sessions towards 1.1900. However, mixed weekly charts are expected to limit any immediate break. Meanwhile, support at 1.1800/07 should continue to underpin any immediate setbacks.

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