Chart EUR/CAD Update: Immediate gains to remain limited
Cautious trade above the 1.6025 recent lows is giving way to a move higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.6250 | congestion | S1 | 1.6025 | * | recent lows | ||
| R3 | 1.6200/10 | ** | congestion; 76.4% ret | S2 | 1.6000 | ** | congestion | |
| R2 | 1.6145/50 | * | 1 Apr (w) high; congestion | S3 | 1.5950 | * | recent lows | |
| R1 | 1.6100 | ** | break level | S4 | 1.5900 | * | congestion |
Asterisk denotes strength
12:00 BST - Cautious trade above the 1.6025 recent lows is giving way to a move higher, as intraday studies turn higher, with prices currently pressuring resistance at the 1.6100 break level. A break will open up resistance at the 1.6145 weekly high of 1 April and congestion around 1.6150. However, positive daily readings are flattening, suggesting any immediate tests could give way to consolidation. Broader weekly charts continue to improve, but a close above here is needed to turn sentiment positive and extend March gains towards strong resistance within 1.6200/10. Meanwhile, a close below 1.6025, if seen, will add weight to sentiment and prompt a deeper pullback below congestion around 1.6000 towards the 1.5950 recent lows. Initial tests of here could give way to fresh consolidation.