Further gains are highlighted in the coming weeks, as momentum studies tick higher and sentiment improves, with a break above the USD2.7670 high of June 2015 targeting historic congestion around USD2.8000.
Still higher are the USD2.8345 high of 26 May 2015 and the USD2.8555, (61.8%) of the 2014-2016 fall. However, initial tests of this area could give way to consolidation, as momentum becomes overstretched, before a clear break is seen.
Support remains at congestion around USD2.6000, and should underpin any immediate setbacks as investors maintain a buy-into-weakness strategy. If broken, not seen, focus will turn back to congestion around USD2.5500, as investors subsequently move back to a cautious stance.