Chart EUR/USD Update: Room for a minor pullback
The anticipated minor pullback is giving way to fresh consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | * | congestion | S1 | 1.1760 | break level | ||
| R3 | 1.1850 | break level | S2 | 1.1700 | ** | congestion | ||
| R2 | 1.1825 | ** | 61.8% ret of Jan-Mar fall | S3 | 1.1640 | ** | 23 Mar (w) high | |
| R1 | 1.1800 | ** | congestion | S4 | 1.1600 | ** | congestion |
*Asterisk denotes strength of level
08:35 BST - The anticipated minor pullback is giving way to fresh consolidation, with prices currently balanced within the 1.1760 - 1.1800 range. Intraday studies are bearish and overbought daily stochastics are unwinding, highlighting room for fresh losses in the coming sessions. A break below support at the 1.1760 break level will open up congestion around 1.1700. But the positive daily Tension Indicator and improving weekly charts should limit any initial tests in renewed consolidation. Meanwhile, resistance remains at congestion around 1.1800 and extends to the 1.1825 Fibonacci retracement. A close above here is needed to turn sentiment positive once again and extend mid-March gains initially to 1.1850.