Chart EUR/CAD Update: Under pressure
Choppy trade around 1.6000 has given way to the anticipated break
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6150 | * | congestion | S1 | 1.5965 | ** | 23 Apr (w) low | |
| R3 | 1.6100 | ** | break level | S2 | 1.5935 | ** | 50% ret of Mar-Apr rally | |
| R2 | 1.6022 | * | 2-6 Apr lows | S3 | 1.5900 | congestion | ||
| R1 | 1.6000 | * | break level | S4 | 1.5855 | ** | 61.8% ret of Mar-Apr rally |
Asterisk denotes strength
11:50 BST - Choppy trade around 1.6000 has given way to the anticipated break, with prices currently balanced in cautious trade around 1.5985. Daily readings are under pressure and overbought weekly stochastics are unwinding, highlighting room for further losses in the coming sessions. However, a break below the 1.5965 weekly low of 23 April is needed to turn sentiment negative and extend mid-April losses initially to the 1.5935 Fibonacci retracement. Further selling pressure would open up the 1.5855 retracement. Meanwhile, resistance is at 1.6000 and extends to the 1.6022 lows from 2-6 April. A close above here would help to stabilise price action and prompt consolidation beneath 1.6100.