Chart EUR/CAD Update: Cautious in broad range
Cautious trade around 1.4700 is giving way to a test lower
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.4820 | ** | 61.8% ret of Nov-Feb fall | S1 | 1.4650 | * | congestion | |
R3 | 1.4780 | ** | 6 Mar YTD high | S2 | 1.4600 | * | congestion | |
R2 | 1.4750 | congestion | S3 | 1.4580 | * | 23 Apr low | ||
R1 | 1.4700 | * | congestion | S4 | 1.4545 | ** | 2 Apr (m) low | |
Asterisk denotes strength of level
11:00 BST - Cautious trade around 1.4700 is giving way to a test lower, as intraday studies come under pressure, with focus turning to congestion support at 1.4650. Daily readings are rising, suggesting any immediate tests could give way to consolidation, before mixed/negative weekly charts prompt a break and open up further congestion around 1.4600. Initial tests are expected to give way to fresh range trade, however, as broad sentiment remains cautious. A close below the 1.4545 monthly low of 2 April is needed to turn sentiment negative and extend March losses towards critical support within 1.4459 - 1.4500. Meanwhile, resistance is strong up to congestion around 1.4750 and the 1.4780 current year high of 6 March. A close above here would turn sentiment positive and extend February gains towards the 1.4820 Fibonacci retracement.