Pressuring Fibonacci retracement.
Consolidation possible before further gains are seen. Any pullback to remain limited.
Steady gains from the USD1.6110 low of March are now pressuring the USD2.0555 retracement as momentum studies improve steadily and the Tension Indicator generates a bullish signal. However, there is risk of a minor pullback in the coming days, as short-term studies settle back, but any downside tests are expected to stabilise above the USD1.7660 low of 28 March as investors maintain a buy-intoweakness strategy. An unexpected break will turn sentiment cautious, and open up a deeper reaction towards USD1.6110. In the coming weeks, further gains are looked for, with a close above USD2.055 targeting congestion around USD2.1000. Extension to the USD2.1550 retracement cannot be discounted, as background monthly studies also improve. Natural Gas is also showing signs of improvement relative to the Energy Sector.
R4 2.2280 February high R3 2.1550 61.8% ret of Jan-Mar fall R2 2.1000 congestion R1 2.0555 50% ret of Jan-Mar fall
S1 1.7660 28 Mar low S2 1.6110 March low S3 1.6100 December 1998 low