Chart EUR/CAD Update: Cautious trade - background studies under pressure
Consolidation beneath congestion resistance at 1.6200 is giving way to a drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6400 | * | break level | S1 | 1.6100 | * | congestion | |
| R3 | 1.6340 | * | 13 Nov (m) high | S2 | 1.6065 | 8 Dec low | ||
| R2 | 1.6300 | * | congestion | S3 | 1.6035 | ** | 61.8% ret of Jul-Oct rally | |
| R1 | 1.6200 | * | congestion | S4 | 1.6000 | * | congestion |
Asterisk denotes strength
11:45 GMT - Consolidation beneath congestion resistance at 1.6200 is giving way to a drift lower, as intraday studies turn down, with prices currently trading around 1.6130. Immediate focus is on congestion support at 1.6100. But mixed/positive daily readings are expected to limit any initial tests in consolidation, before negative weekly charts extend losses still further. A later break below 1.6100 will add weight to sentiment and extend mid-October losses towards the 1.6035 Fibonacci retracement. However, already oversold weekly stochastics could limit any initial tests in consolidation, before losses extend still further. Meanwhile, a close above 1.6200, if seen, will help to stabilise price action and give way to consolidation beneath further congestion around 1.6300.