Chart AUD/USD Update: Immediate gains to remain limited
The break above 0.7150 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7300 | ** | congestion | S1 | 0.7150 | * | congestion | |
| R3 | 0.7277 | ** | 6 May YTD high | S2 | 0.7100 | ** | congestion | |
| R2 | 0.7250 | * | congestion | S3 | 0.7050 | * | congestion | |
| R1 | 0.7200 | ** | congestion | S4 | 0.7000 | * | congestion |
Asterisk denotes strength of level
14:10 BST - The break above 0.7150 is giving way to consolidation, as intraday studies come under pressure and overbought daily stochastics flatten, with prices extending cautious trade around 0.7160. The daily Tension Indicator and broader weekly charts continue to rise, highlighting room for continuation towards further congestion around 0.7200. However, overbought daily stochastics could limit any immediate break in profit-taking/consolidation beneath strong resistance at congestion around 0.7250 and the 0.7277 current year high of 6 May.
Meanwhile, a close back below congestion support at 0.7150 will turn sentiment neutral and prompt fresh consolidation above further congestion around 0.7100.