Chart EUR/CAD Update: Gains to remain limited
Cautious trade above congestion support at 1.5600 is giving way to a test higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.5960 | * | 21 Apr YTD high | S1 | 1.5600 | * | congestion | |
| R3 | 1.5900 | congestion | S2 | 1.5500 | ** | congestion | ||
| R2 | 1.5800 | congestion | S3 | 1.5400 | ** | congestion | ||
| R1 | 1.5700 | break level | S4 | 1.5325 | ** | 27 Mar (w) low |
Asterisk denotes strength
12:20 BST - Cautious trade above congestion support at 1.5600 is giving way to a test higher, as intraday studies rise, with focus turning to resistance at 1.5700. Oversold daily stochastics are also flattening, suggesting potential for a test above here. But the negative daily Tension Indicator and deteriorating weekly charts are expected to limit scope in renewed selling interest beneath congestion around 1.5800. Following corrective trade, fresh losses are looked for. A later close below 1.5600 will add weight to sentiment and open up further congestion around 1.5500, where by-then oversold intraday studies could prompt renewed consolidation.