The anticipated minor pullback has bounced from support within congestion around 1.2500 and the 1.2350 break level
The anticipated minor pullback has bounced from support within congestion around 1.2500 and the 1.2350 break level.
Fresh selling interest has appeared at the 1.2900~ monthly high of 4 March, with prices balanced once again at levels from March.
Rising weekly stochastics are turning down and the weekly Tension Indicator is also coming under pressure, highlighting a deterioration in sentiment and room for fresh tests lower in the coming weeks, back to support within 1.2350 - 1.2500.
A further close beneath here, however, would add weight to sentiment and extend March losses towards critical support within the 1.2075 Fibonacci retracement and congestion around 1.2000, where fresh consolidation is looked for.
Meanwhile, resistance is up to congestion around 1.3000 and extends to the 1.3142 year high of July 2023.
Any initial tests are expected to give way to consolidation, as monthly charts turn mixed/negative.
However, a close above 1.3142 will turn sentiment positive and extend September 2022 gains from 1.0355 towards the 1.3330 Fibonacci retracement. Subsequent continuation towards congestion around 1.3500 cannot be ruled out.