Published: 2024-05-07T07:40:56.000Z
Chart EUR/USD Update: Consolidating - prices coming under pressure
Senior Technical Strategist
1
Anticipated gains have given way to consolidation
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.0980 | ** | 8 Mar (m) high | S1 | 1.0750 | * | break level | |
R3 | 1.0885/00 | ** | 9 Apr (m) high; congestion | S2 | 1.0700 | * | congestion | |
R2 | 1.0850 | congestion | S3 | 1.0650 | congestion | |||
R1 | 1.0800 | * | congestion | S4 | 1.0600/10 | ** | congestion; 76.4% ret of Oct-Dec rally |
Asterisk denotes strength of level
08:30 BST - Anticipated gains have given way to consolidation, with prices currently balanced above support at 1.0750. Intraday studies are leaning lower and overbought daily stochastics are flattening, suggesting potential for a test beneath here. However, the rising daily Tension Indicator and improving weekly charts are expected to limit scope in fresh buying interest/consolidation towards further congestion around 1.0700. Meanwhile, resistance is at 1.0800. A later close above here will improve price action and extend April gains initially to congestion around 1.0850.