Chart USD/CAD Update: Consolidating - background studies rising
Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath strong resistance within the 1.3985 - 1.4000 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | break level | S1 | 1.3930 | intraday lows | |||
| R3 | 1.4023~ | * | 11 Jun YTD high | S2 | 1.3900 | ** | congestion | |
| R2 | 1.4000 | ** | break level | S3 | 1.3850 | congestion | ||
| R1 | 1.3985 | ** | 76.4% ret of Nov-May fall | S4 | 1.3800 | * | congestion |
Asterisk denotes strength of level
16:30 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath strong resistance within the 1.3985 - 1.4000 range. The positive daily Tension Indicator is turning down, highlighting room for further cautious trade, before a tick higher in overbought daily stochastics and rising weekly charts prompt further gains. A close above 1.4000 will help to improve sentiment and extend late-January gains beyond the 1.4023~ current year high of 11 June towards resistance at 1.4050. Meanwhile, support remains at the 1.3930 intraday lows and extends to congestion around 1.3900. A close beneath here, if seen, will add weight to sentiment and open up a test of 1.3850, where fresh consolidation is expected to appear.