Chart USD/CAD Update: Gains to remain limited
The bounce from congestion support at 1.3700 is giving way to consolidation above 1.3800
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4150 | * | 14 Feb (m) low | S1 | 1.3800 | congestion | ||
| R3 | 1.4100 | break level | S2 | 1.3700 | ** | congestion | ||
| R2 | 1.4000 | * | break level | S3 | 1.3685 | * | 26 May YTD low | |
| R1 | 1.3900 | * | congestion | S4 | 1.3600 | ** | congestion |
Asterisk denotes strength of level
16:05 BST - The bounce from congestion support at 1.3700 is giving way to consolidation above 1.3800, as overbought intraday studies turn down. Daily stochastics and the daily Tension Indicator have turned higher, highlighting room for extension towards congestion resistance at 1.3900. But negative weekly charts are expected to limit any tests in renewed selling interest/consolidation. Following corrective trade, fresh losses are looked for. But a close below support at the 1.3685 current year low of 26 May and congestion around 1.3700 is needed to turn sentiment negative and extend February losses initially towards congestion around 1.3600.