Chart USD/CAD Update: Pressuring 1.3800 - studies under pressure
Little change, as cautious price action extends pressure on congestion support at 1.3800
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | congestion | S1 | 1.3800 | ** | congestion | |
| R3 | 1.3950 | ** | 61.8% ret of Nov-Dec fall | S2 | 1.3700 | * | congestion | |
| R2 | 1.3900/20 | ** | break level; 9 Jan (w) high | S3 | 1.3640 | * | 26 Dec (w) low | |
| R1 | 1.3850 | congestion | S4 | 1.3600 | ** | congestion |
Asterisk denotes strength of level
16:35 GMT - Little change, as cautious price action extends pressure on congestion support at 1.3800. Daily stochastics continue to fall, unwinding negative divergence, and the daily Tension Indicator is also negative, highlighting room for further losses in the coming sessions. A fresh break below 1.3800 will add weight to sentiment and open up further congestion around 1.3700. However, mixed/positive weekly charts could limit any initial tests in consolidation, before deteriorating longer-term charts prompt deeper losses. Meanwhile, resistance remains at congestion around 1.3850. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath 1.3900/20.