Chart EUR/CAD Update: Gains to remain limited
Consolidation has given way to a fresh test higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6590 | ** | 61.8% ret of 1995-2012 fall | S1 | 1.6300 | * | congestion | |
| R3 | 1.6500 | * | historic congestion | S2 | 1.6200 | * | congestion | |
| R2 | 1.6468 | * | 17 Oct YTD high | S3 | 1.6170~ | ** | 19 Sep-10 Oct (w) lows | |
| R1 | 1.6400 | * | break level | S4 | 1.6115 | * | 50% ret of Jul-Oct rally |
Asterisk denotes strength
11:25 GMT - Consolidation has given way to a fresh test higher, with the break above 1.6300 currently balanced around 1.6315. Rising intraday studies and improving daily readings highlight room for further tests higher in the coming sessions. But negative weekly charts are expected to limit scope in renewed selling interest beneath resistance at 1.6400. Following cautious trade, fresh losses are looked for. A break back below congestion support at 1.6300 will open up stronger support at the 1.6170~ weekly lows from mid-September to mid-October, and congestion around 1.6200. A further close beneath here would add weight to sentiment and confirm a near-term top in place at the 1.6468 current year high of 17 October, as deeper losses then focus on 1.6100/15.