Chart EUR/CAD Update: Cautious trade - daily studies under pressure
The test of support at 1.6150 has given way to a sharp bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6300 | ** | congestion | S1 | 1.6150 | * | break level | |
| R3 | 1.6270 | ** | 19 Jun (m) high | S2 | 1.6125~ | * | 26 Jun (w) low | |
| R2 | 1.6250~ | ** | 14 Apr (m) high | S3 | 1.6100 | ** | break level | |
| R1 | 1.6200 | ** | congestion | S4 | 1.6035 | ** | 8 Jun (m) low |
Asterisk denotes strength
11:05 BST - The test of support at 1.6150 has given way to a sharp bounce, as intraday studies turn higher, with prices currently trading around congestion resistance at 1.6200. A fresh test above here cannot be ruled out. But deteriorating daily readings and unwinding overbought weekly stochastics should limit scope in renewed selling interest towards the 1.6250~ monthly high of 14 April. Following cautious trade, fresh losses are looked for. Support remains at 1.6150. But a close below the 1.6125~ weekly low of 26 June would turn sentiment negative and confirm a near-term top in place at the 1.6250 - 1.6270 range. Focus will then initially turn to 1.6100.