Chart USD/CAD Update: Any break above 1.3900 to remain limited
Consolidation above the 1.3845 low of 17 August is giving way to a break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | break level | S1 | 1.3845 | * | 17 Aug low | ||
| R3 | 1.4000 | ** | break level | S2 | 1.3820 | ** | 61.8% ret of May-Jun rally | |
| R2 | 1.3950 | congestion | S3 | 1.3800 | ** | congestion | ||
| R1 | 1.3900 | * | congestion | S4 | 1.3715 | ** | 76.4% ret of May-Jun rally |
Asterisk denotes strength of level
16:40 BST - Consolidation above the 1.3845 low of 17 August is giving way to a break higher, with rising intraday studies putting focus on congestion resistance at 1.3900. Oversold daily stochastics are also flattening, suggesting room for a test above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest beneath further congestion around 1.3950.
Following cautious/corrective trade, fresh losses are looked for. A later break below 1.3845 will extend late-June losses towards support at the 1.3820 Fibonacci retracement. Just lower is congestion around 1.3800. Already oversold daily stochastics could limit any initial tests of this range in short-covering/consolidation, before prices continue still lower.