Chart EUR/CAD Update: Choppy in range
Cautious trade has given way to a test above congestion resistance at 1.6150
| 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 - Cautious trade has given way to a test above congestion resistance at 1.6150. Prices have reached 1.6165~ before settling back once again as overbought intraday studies unwind. Focus is turning to congestion support at 1.6100. But mixed daily readings are expected to limit any initial tests in consolidation, before bearish weekly charts prompt a break. However, a close below stronger support at the 1.6061/65 monthly lows from 8-31 December is needed to turn sentiment negative and extend October losses initially to the 1.6035 Fibonacci retracement. Meanwhile, a close above 1.6150 would help to stabilise price action and prompt renewed consolidation beneath further congestion around 1.6200.