FX September 01, 2020 / 11:54 am UTC

Chart EUR/CAD Update: Extending Consolidation, Gains to Remain Limited

By Mike Macdonald



Levels
Imp
Comment


Levels
Imp
Comment
R4
1.5990/00
**
March high; congestion

S1
1.5533
*
May high
R3
1.5800
*
Congestion

S2
1.5500/15
*
Congestion; 50% retracement
R2
1.5720

Intraday break level

S3
1.5470
**
August 27 (monthly) low
R1
1.5650

Break level

S4
1.5400
*
61.8% retracement of April-June rally

Asterisk denotes strength of level


12:45 BST - No change, while mixed intraday studies keep near-term sentiment cautious and extend consolidation above the 1.5515/33 support. Daily momentum readings are trading higher, and the negative Tension Indicator is flattening, highlighting the likelihood of a push higher in the coming sessions. However, negative weekly charts will probably limit any tests/break of 1.5650. In the coming sessions, expectations are for prices to come under pressure once again, with a later close below 1.5515 extending July losses toward the 1.5400 Fibonacci retracement via the 1.5470 monthly low from August 27. Meanwhile, an unexpected close above 1.5650 would delay downside development and turn price action cautiously Neutral.

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