Published: 2024-05-07T10:26:19.000Z
Chart EUR/CAD Update: Further consolidation
Senior Technical Strategist
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The test of congestion resistance at 1.4750 is giving way to consolidation
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.4900 | * | break level | S1 | 1.4700 | * | congestion | |
R3 | 1.4820 | ** | 61.8% ret of Nov-Feb fall | S2 | 1.4650 | * | congestion | |
R2 | 1.4780 | ** | 6 Mar YTD high | S3 | 1.4600 | * | congestion | |
R1 | 1.4750 | congestion | S4 | 1.4580 | * | 23 Apr low | ||
Asterisk denotes strength of level
11:00 BST - The test of congestion resistance at 1.4750 is giving way to consolidation, as intraday studies turn mixed/negative. Overbought daily stochastics are also flattening, suggesting potential for a test below congestion support at 1.4700. However, the rising daily Tension Indicator and mixed/positive weekly charts are expected to limit any losses in fresh buying interest above 1.4650. Meanwhile, resistance remains at 1.4750 and extends to 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.