Chart EUR/CAD Update: Room for lower
Anticipated losses have reached congestion support at 1.6200
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6590 | ** | 61.8% ret of 1995-2012 fall | S1 | 1.6200 | * | congestion | |
| R3 | 1.6500 | * | historic congestion | S2 | 1.6150 | ** | 38.2% ret of Jul-Oct rally | |
| R2 | 1.6400 | ** | 3 Oct YTD high, congestion | S3 | 1.6100 | ** | congestion | |
| R1 | 1.6300 | * | historic congestion | S4 | 1.6000 | ** | congestion |
Asterisk denotes strength
11:50 BST - Anticipated losses have reached congestion support at 1.6200, where oversold intraday studies are prompting short-term reactions. Daily readings continue to track lower and broader weekly charts are coming under pressure, highlighting room for a later break and continuation of October losses towards the 1.6150 Fibonacci retracement. By-then oversold daily stochastics could limit any initial tests in consolidation, before further downside tests unfold. Meanwhile, resistance is at 1.6300. A close above here would help to stabilise price action. A further close above the 1.6400 current year high of 3 October, if seen, will turn sentiment positive and extend long-term gains towards historic congestion around 1.6500.