Chart EUR/CAD Update: Balanced beneath multi-year resistances
Little change, as mixed intraday studies keep near-term sentiment cautious
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6330 | ** | June 2009 high | S1 | 1.6200 | * | congestion | |
| R3 | 1.6300 | * | historic congestion | S2 | 1.6100 | ** | congestion | |
| R2 | 1.6257 | ** | 5 Sep YTD high | S3 | 1.6000 | ** | congestion | |
| R1 | 1.6235 | ** | 76.4% ret of 2008-2012 fall | S4 | 1.5900 | congestion |
Asterisk denotes strength
11:40 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath critical resistance at the 1.6235 multi-year Fibonacci retracement and the 1.6257 current year high of 5 September. Overbought daily stochastics are turning down, highlighting room for a test below congestion support at 1.6200 towards further congestion around 1.6100. However, the rising daily Tension Indicator could prompt renewed consolidation, before negative weekly charts prompt further losses. A close below 1.6000 would turn sentiment outright negative and confirm a near-term top in place. Meanwhile, a close above 1.6235/57 will turn sentiment positive and extend 2012 gains towards 1.6300/30.