Chart EUR/USD Update: Short-term consolidation
Anticipated losses are meeting short-covering just above congestion support at 1.1600
| 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
08:35 BST - Anticipated losses are meeting short-covering just above congestion support at 1.1600, as oversold intraday studies unwind, with a corrective bounce putting focus on resistance at the 1.1655 weekly lwo of 30 April. Daily readings continue to point lower and broader weekly charts are under pressure, suggesting any immediate tests could give way to renewed selling interest. Following cautious/corrective trade, fresh losses are looked for. A later close below 1.1600 will add weight to sentiment and extend mid-April losses towards further congestion around 1.1550. Meanwhile, a close above 1.1655, if seen, will help to stabilise sentiment and prompt consolidation beneath 1.1700.