Downside risks, however, are expected to remain limited, as momentum studies continue to strengthen and positive divergence unwinds. In the coming months, fresh gains are looked for, as investor sentiment gradually improves.
A close above the 1.0900~ high of March will further improve sentiment, and open up the 1.0970~, (50%) and congestion around 1.1000. Beyond here is the 1.1125, (61.8%) .
Support remains at 1.0500 and extends down to the 1.0340~ year low of December 2016. This area should underpin any immediate setbacks, as the Tension Indicator (not shown) continues to improve.
A break, however, would see increased selling pressure and confirm extension of the broad 2008 bear trend. Focus would then turn to the 1.0065, (76.4%) of the 2000-2008 rally and psychological support at parity.