Chart EUR/CAD Update: Range extension - background studies under pressure
Little change, as prices extend consolidation around 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
11:50 GMT - Little change, as prices extend consolidation around congestion resistance at 1.6150. Intraday studies are turning down, suggesting potential for a minor test lower. But rising daily readings are expected to limit scope in renewed buying interest above congestion support at 1.6100. Broader weekly charts are mixed/negative and longer-term charts are bearish, highlighting room for further losses. 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 should be limited to further congestion around 1.6200.