Chart EUR/USD Update: Sharp bounce
Cautious trade around 1.1550 has given way to a sharp USD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1825 | ** | 61.8% ret of Jan-Mar fall | S1 | 1.1640 | ** | 23 Mar (w) high | |
| R3 | 1.1800 | ** | congestion | S2 | 1.1600 | ** | congestion | |
| R2 | 1.1745 | ** | 50% ret of Jan-Mar fall | S3 | 1.1550 | * | congestion | |
| R1 | 1.1700 | ** | congestion | S4 | 1.1500 | ** | congestion |
*Asterisk denotes strength of level
08:50 BST - Cautious trade around 1.1550 has given way to a sharp USD-driven bounce, with prices currently pressuring congestion resistance at 1.1700. Daily readings have ticked higher and oversold weekly stochastics are unwinding, highlighting room for continuation towards the 1.1745 Fibonacci retracement. However, the negative weekly Tension Indicator and bearish longer-term charts should limit any further gains in profit-taking/consolidation towards the 1.1800/25 range. Meanwhile, support is raised to the 1.1640 weekly high of 23 March. A close beneath here, if seen, will help to stabilise price action and prompt consolidation beneath congestion around 1.1600.