Chart EUR/CAD Update: Immediate gains to remain limited
The anticipated test below 1.5700 has bounced from 1.5670
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6155~ | ** | Mar 2018 (y) high | S1 | 1.5700 | break level | ||
| R3 | 1.5990/00 | ** | Mar 2020 (y) high; cong | S2 | 1.5600 | * | congestion | |
| R2 | 1.5932 | * | 11 Apr YTD high | S3 | 1.5500 | ** | congestion | |
| R1 | 1.5855 | * | 11 Mar (m) high | S4 | 1.5400 | * | congestion |
Asterisk denotes strength
10:50 BST - The anticipated test below 1.5700 has bounced from 1.5670, with steady gains reaching the 1.5855 monthly high of 11 March, before settling into cautious trade around 1.5800 as overbought intraday studies flatten. Daily readings are positive, highlighting potential for a retest of 1.5855. But flattening overbought daily stochastics could limit any initial break in consolidation beneath the 1.5932 current year high of 11 April. Broader weekly charts are positive. But a further close above here is needed to confirm fresh gains and extend August 2022 gains towards strong resistance at 1.5990/00. Meanwhile, support remains at 1.5700. A close beneath here would turn sentiment neutral and prompt consolidation above congestion around 1.5600.