Chart EUR/USD Update: Gains to remain limited
Cautious trade around 1.1500 has given way to a steady bounce to the 1.1655 high of 4 March
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1795/00 | ** | 50% ret; congestion | S1 | 1.1600 | ** | congestion | |
| R3 | 1.1725 | * | 38.2% ret of Jan-Mar fall | S2 | 1.1550 | * | congestion | |
| R2 | 1.1700 | * | congestion | S3 | 1.1500 | ** | congestion | |
| R1 | 1.1655 | 4 Mar high | S4 | 1.1470~ | * | 5 Nov (m) low |
*Asterisk denotes strength of level
08:40 GMT - Cautious trade around 1.1500 has given way to a steady bounce to the 1.1655 high of 4 March, where flat overbought intraday studies are prompting short-term reactions. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting room for a break above here towards congestion around 1.1700. Just higher is the 1.1725 Fibonacci retracement. But negative weekly charts should limit any tests of 1.1700/25 in renewed selling interest/consolidation. Meanwhile, support is raised to congestion around 1.1600. A close beneath here would help to stabilise price action and prompt consolidation above further congestion around 1.1550.