Consolidation is giving way to a fresh break higher to 1.3900, as intraday studies track steadily higher. Both daily and weekly Tension Indicators remain positive, highlighting scope for further gains in the coming sessions, with a close above 1.3900 extending March 2020 gains towards historic congestion around 1.4000 and the 1.4030 weekly high of late April 2018. However, overbought daily stochastics are expected to prompt profit-taking around here. Meanwhile, support is at the 1.3866 weekly high of 10 February. A close beneath here, if seen, will turn sentiment Neutral and open up deeper losses towards 1.3800.
We are an award winning independent research firm, covering Macroeconomics, Policy and Financial Markets. Our Technical Analysis coverage spans 40 FX pairs across developed and emerging markets. Register for a free trial at www.continuumeconomics.com