Chart EUR/CAD Update: Limited tests higher
Consolidation following the test of support within congestion around 1.6000 and the 1.6020 Fibonacci retracement has given way to a bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6250~ | ** | 14 Apr (m) high | S1 | 1.6020 | * | 38.2% ret of Mar-Jun rally | |
| R3 | 1.6200 | ** | congestion | S2 | 1.6000 | ** | congestion | |
| R2 | 1.6150 | * | break level | S3 | 1.5940 | ** | 50% ret of Mar-Jun rally | |
| R1 | 1.6100 | ** | break level | S4 | 1.5900~ | ** | 4 May (m) low |
Asterisk denotes strength
11:45 BST - Consolidation following the test of support within congestion around 1.6000 and the 1.6020 Fibonacci retracement has given way to a bounce, with prices currently trading around 1.6060. Oversold daily stochastics are flattening, suggesting room for continuation towards resistance at 1.6100. But the bearish daily Tension Indicator and falling weekly charts should limit any tests in renewed selling interest. Following cautious/corrective trade, fresh losses are looked for. A later close below 1.6000/20 will add weight to sentiment and extend late-June losses towards the 1.5940 retracement. Meanwhile, a close above 1.6100 would help to stabilise price action and prompt consolidation beneath 1.6150.