Chart EUR/USD Update: Consolidating - background studies under pressure
Cautious trade has given way to a test of resistance at the 1.1655 weekly low of 30 April
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1800 | ** | congestion | S1 | 1.1600 | ** | congestion | |
| R3 | 1.1750 | congestion | S2 | 1.1550 | * | congestion | ||
| R2 | 1.1700 | ** | congestion | S3 | 1.1500 | ** | congestion | |
| R1 | 1.1655 | ** | 30 Apr (w) low | S4 | 1.1450 | * | congestion |
*Asterisk denotes strength of level
08:25 BST - Cautious trade has given way to a test of resistance at the 1.1655 weekly low of 30 April, with prices currently trading around 1.1640. Daily readings are turning higher, suggesting room for a test above 1.1655. But negative weekly charts should limit scope in renewed selling interest/consolidation beneath congestion resistance at 1.1700. Following cautious trade, fresh losses are looked for. A later close below congestion support at 1.1600 will add weight to sentiment and extend mid-April losses towards further congestion around 1.1550. Continuation down to further congestion around 1.1500 cannot be ruled out.