Chart EUR/USD Update: Consolidating - studies under pressure
The anticipated test of congestion support is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1850 | ** | congestion | S1 | 1.1700 | ** | congestion | |
| R3 | 1.1825 | ** | 61.8% ret of Jan-Mar fall | S2 | 1.1670 | ** | 23 Apr (w) low | |
| R2 | 1.1800 | ** | congestion | S3 | 1.1640 | ** | 23 Mar (w) high | |
| R1 | 1.1750 | congestion | S4 | 1.1600 | ** | congestion |
*Asterisk denotes strength of level
08:30 BST - The anticipated test of congestion support is giving way to consolidation, with prices currently balanced around 1.1715. Daily readings are under pressure, however, highlighting room for a later break towards the 1.1670 weekly low of 23 April. But mixed weekly charts should limit any initial tests of this 1.1670 - 1.1700 range in consolidation, before deteriorating longer-term charts prompt further losses. A close beneath here will turn sentiment negative and confirm continuation of mid-April losses, initially to the 1.1640 weekly high of 23 March. Meanwhile, resistance remains at congestion around 1.1750. A close back above here would help to stabilise price action and prompt fresh consolidation beneath further congestion around 1.1800.