Chart EUR/CAD Update: Extending December losses
Cautious trade has given way to anticipated losses
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.5060 | * | 18 Dec (w) high | S1 | 1.4722 | * | 2 Dec (m) low | |
| R3 | 1.5000 | ** | congestion | S2 | 1.4700 | * | congestion | |
| R2 | 1.4900 | ** | break level | S3 | 1.4625 | ** | 76.4% ret of Nov-Dec rally | |
| R1 | 1.4800 | * | congestion | S4 | 1.4600 | * | congestion |
Asterisk denotes strength
10:50 GMT - Cautious trade has given way to anticipated losses, with prices currently consolidating the test of support at the 1.4722 monthly low of 2 December and congestion around 1.4700. Daily studies continue to track lower and broader weekly charts are also under pressure, highlighting room for extension of December losses in the coming sessions. A later break below 1.4700 will add weight to already bearish sentiment and open up the 1.4625 Fibonacci retracement. Just lower is congestion around 1.4600, but already oversold daily stochastics are expected to limit any initial tests of this area in consolidation/short-covering. Meanwhile, resistance is lowered to congestion around 1.4800. A close above here is needed to stabilise price action and prompt consolidation beneath 1.4900.