Chart EUR/CAD Update: Gains to remain limited
The test of congestion resistance at 1.6150 has been pushed back from 1.6165~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6300 | * | congestion | S1 | 1.6100 | * | congestion | |
| R3 | 1.6250 | break level | S2 | 1.6061/65 | * | 8-31 Dec (m) lows | ||
| R2 | 1.6200 | * | congestion | S3 | 1.6035 | ** | 61.8% ret of Jul-Oct rally | |
| R1 | 1.6150 | * | congestion | S4 | 1.6000 | * | congestion |
Asterisk denotes strength
11:25 GMT - The test of congestion resistance at 1.6150 has been pushed back from 1.6165~, as intraday studies turn down, unwinding negative divergence, with prices currently balanced around 1.6135. Daily readings are rising and oversold weekly stochastics are flat, suggesting room for a fresh test above 1.6150. But the negative weekly Tension Indicator and bearish longer-term charts should limit scope in renewed selling interest towards resistance at further congestion around 1.6200. Following choppy trade, fresh losses are looked for. Support is at congestion around 1.6100. But a close below stronger support at the 1.6061/65 December range lows would add weight to sentiment and extend mid-October losses initially towards the 1.6035 Fibonacci retracement. Further selling will open up the 1.5930 retracement, via congestion around 1.6000.