Chart EUR/CAD Update: Consolidating losses - studies under pressure
The test of congestion support at 1.5500 is giving way to further consolidation
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.5900 | congestion | S1 | 1.5500 | ** | congestion | ||
| R3 | 1.5800 | congestion | S2 | 1.5400 | ** | congestion, 38.2% ret | ||
| R2 | 1.5700 | break level | S3 | 1.5325 | ** | 27 Mar (w) low | ||
| R1 | 1.5600 | * | congestion | S4 | 1.5225 | ** | 50% ret of Nov-Apr rally |
Asterisk denotes strength
10:45 BST - The test of congestion support at 1.5500 is giving way to further consolidation, as oversold intraday studies unwind and oversold daily stochastics edge higher, with prices currently trading around 1.5530. The daily Tension Indicator is negative, however, and broader weekly charts are deteriorating, suggesting difficulty sustaining any bounce towards congestion resistance at 1.5600. Following cautious trade, fresh losses are looked for. A later break below 1.5500 will add weight to sentiment and open up strong support at 1.5400. Still lower is critical support at the 1.5325 weekly low of 27 March. Meanwhile, a close above 1.5600, if seen, will turn sentiment neutral and prompt fresh consolidation beneath resistance at 1.5700.