Chart EUR/USD Update: Higher in short-covering
Consolidation above 1.1450 has given way to a sharp bounce in short-covering
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1700 | * | congestion | S1 | 1.1550 | * | congestion | |
| R3 | 1.1665 | * | 38.2% ret of Jan-Mar fall | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1640 | ** | 23 Mar (w) high | S3 | 1.1450 | recent lows, congestion | ||
| R1 | 1.1600 | ** | congestion | S4 | 1.1400/10 | ** | congestion; 13 Mar YTD low |
*Asterisk denotes strength of level
08:35 BST - Consolidation above 1.1450 has given way to a sharp bounce in short-covering, with prices currently pressuring congestion resistance at 1.1600. Rising daily readings and unwinding oversold weekly stochastics highlight room for continuation towards the 1.1640 weekly high of 23 March. Just higher is the 1.1665 Fibonacci retracement. But the negative weekly Tension Indicator and bearish longer-term readings should limit any immediate tests of this range in fresh consolidation. A close above here, however, will improve sentiment and extend March gains initially to congestion around 1.1700. Meanwhile, support is raised to congestion around 1.1550. A close beneath here, not yet seen, will help to stabilise sentiment and prompt consolidation above further congestion around 1.1500.