Chart USD/CAD Update: Cautious trade - background studies rising
Little change, as prices extend consolidation around strong resistance at 1.3800/10
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3900 | ** | congestion | S1 | 1.3750 | congestion | ||
| R3 | 1.3870 | ** | 76.4% ret of Mar-May fall | S2 | 1.3730 | * | recent lows | |
| R2 | 1.3840 | intraday break level | S3 | 1.3700 | ** | congestion | ||
| R1 | 1.3800/10 | ** | congestion; 61.8% ret | S4 | 1.3640 | break level |
Asterisk denotes strength of level
16:45 BST - Little change, as prices extend consolidation around strong resistance at 1.3800/10. Intraday studies are under pressure and overbought daily stochastics are unwinding, suggesting room for a minor pullback. But the positive daily Tension Indicator and rising weekly charts should limit scope in renewed buying interest above support within the 1.3730/50 range.. Following cautious/corrective trade, fresh gains are looked for. A close above 1.3800/10 will improve sentiment and extend May gains initially to 1.3840. Still higher is the 1.3870 Fibonacci retracement, but already overbought daily stochastics could prompt profit-taking/consolidation towards here.