Chart EUR/CAD Update: Studies turning down
Cautious trade has given way to a sharp break lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.5100 | break level | S1 | 1.4800 | * | congestion | ||
| R3 | 1.5050 | break level | S2 | 1.4735 | ** | 76.4% ret of Jun-Aug rally | ||
| R2 | 1.5000 | * | congestion | S3 | 1.4700/10 | ** | congestion; 14 Nov low | |
| R1 | 1.4900 | ** | break level | S4 | 1.4668 | 1 Jul (m) low |
Asterisk denotes strength
11:55 GMT - Cautious trade has given way to a sharp break lower, with prices testing below congestion support before bouncing from 1.4765 into consolidation around 1.4800. Intraday studies have turned down and daily readings are turning mixed/negative, highlighting a deterioration in sentiment and potential for further losses in the coming sessions. A close below 1.4800 will add weight to sentiment and give way to a retest of the 1.4735 Fibonacci retracement. A further close beneath here, however, will extend August losses below 1.4700 towards congestion around 1.4650. Meanwhile, a close back above resistance at the 1.4900 break level, if seen, will help to stabilise price action and prompt consolidation beneath congestion around 1.5000.