Chart EUR/CAD Update: Choppy trade - background under pressure
Choppy trade has given way to a minor bounce to congestion resistance at 1.6150
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6300 | * | congestion | S1 | 1.6100 | * | congestion | |
| R3 | 1.6250 | break level | S2 | 1.6061/65 | * | 8-31 Dec (m) lows | ||
| R2 | 1.6200 | * | congestion | S3 | 1.6035 | ** | 61.8% ret of Jul-Oct rally | |
| R1 | 1.6150 | * | congestion | S4 | 1.6000 | * | congestion |
Asterisk denotes strength
11:30 GMT - Choppy trade has given way to a minor bounce to congestion resistance at 1.6150, where unwinding overbought intraday studies are prompting a pullback. Immediate focus is back on congestion support at 1.6100. But flat daily readings are expected to limit any initial tests in further consolidation, before negative weekly charts prompt a break towards stronger support at the 1.6061/65 December range lows. A close beneath here will add weight to sentiment and extend mid-October losses initially towards the 1.6035 Fibonacci retracement. Further selling will open up the 1.5930 retracement, via congestion around 1.6000. Meanwhile, any tests above 1.6150 should be limited in selling interest/consolidation beneath 1.6200.