Chart EUR/CAD Update: Balanced at fresh 16-year highs
The anticipated test of 1.6300 has extended 2012 gains to a fresh year high around 1.6318
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6400 | * | historic congestion | S1 | 1.6200 | * | congestion | |
| R3 | 1.6330 | ** | June 2009 high | S2 | 1.6100 | ** | congestion | |
| R2 | 1.6318 | 16 Sep YTD high | S3 | 1.6000 | ** | congestion | ||
| R1 | 1.6300 | * | historic congestion | S4 | 1.5900 | congestion |
Asterisk denotes strength
11:40 BST - The anticipated test of 1.6300 has extended 2012 gains to a fresh year high around 1.6318, where unwinding overbought intraday studies are prompting short-term reactions. Overbought daily stochastics are also edging lower, suggesting room for a pullback towards 1.6250. But the positive daily Tension Indicator and improving weekly charts are expected to limit any deeper losses in renewed consolidation/buying interest towards congestion support at 1.6200. Following cautious trade, fresh gains are looked for. A later close above the 1.6330 high of June 2009 will improve sentiment and open up historic congestion around 1.6400.