Chart EUR/CAD Update: Choppy beneath year highs
The anticipated break below congestion support at 1.6100 has proven shallow
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6235 | ** | 76.4% ret of 2008-2012 fall | S1 | 1.6100 | ** | congestion | |
| R3 | 1.6200 | * | historic congestion | S2 | 1.6000 | ** | congestion | |
| R2 | 1.6180 | * | 18 Aug YTD high | S3 | 1.5900 | congestion | ||
| R1 | 1.6150~ | ** | Mar 18 (y) high | S4 | 1.5800 | congestion |
Asterisk denotes strength
11:20 BST - The anticipated break below congestion support at 1.6100 has proven shallow, as oversold intraday studies unwind, with prices bouncing smartly from 1.6080 to currently trade around 1.6140. A break above 1.6150 will open up the 1.6180 current year high of 18 August and historic congestion around 1.6200. But mixed/negative daily readings are expected to limit any initial tests in consolidation, before prices extend 2022 gains towards the 1.6235 Fibonacci retracement. Meanwhile, a close below 1.6100 will add weight to sentiment and open up further congestion around 1.6000. Any tests should give way to fresh buying interest/consolidation.