Chart EUR/CAD Update: Gains to remain limited
Consolidation above congestion support at 1.6100 has given way to a break higher to congestion resistance at 1.6200
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6393 | ** | 27 Jan YTD high | S1 | 1.6150 | * | congestion | |
| R3 | 1.6300 | * | congestion | S2 | 1.6100 | * | congestion | |
| R2 | 1.6250 | break level | S3 | 1.6061/65 | * | 8-31 Dec (m) lows | ||
| R1 | 1.6200 | * | congestion | S4 | 1.6035 | ** | 61.8% ret of Jul-Oct rally |
Asterisk denotes strength
14:30 GMT - Consolidation above congestion support at 1.6100 has given way to a break higher to congestion resistance at 1.6200, where unwinding overbought intraday studies are prompting short-term reactions. Oversold daily stochastics are ticking higher and the negative daily Tension Indicator is flattening, suggesting room for a test above here. But negative weekly charts should limit scope in renewed selling interest/consolidation towards 1.6250. In the coming sessions, consolidation is looked for, with support down to 1.6100. However, a close below the 1.6061/65 monthly lows from 8-31 December will add weight to sentiment and extend October losses initially to the 1.6035 Fibonacci retracement.