Chart USD/CAD Update: Limited tests higher
Cautious trade has given way to a test higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3755 | * | 61.8% ret of Jan-Feb fall | S1 | 1.3600 | * | congestion | |
| R3 | 1.3725 | * | 6 Feb (m) high | S2 | 1.3550 | congestion | ||
| R2 | 1.3700 | * | congestion | S3 | 1.3500 | ** | congestion | |
| R1 | 1.3650 | congestion | S4 | 1.3480~ | ** | 30 Jan YTD low |
Asterisk denotes strength of level
16:45 GMT - Cautious trade has given way to a test higher, with the break above 1.3600 putting focus on congestion resistance at 1.3650. Daily studies are improving and oversold weekly stochastics are edging higher, suggesting room for a test of 1.3650. But the bearish weekly Tension Indicator and negative longer-term readings should limit any immediate break in renewed selling interest/consolidation beneath further congestion around 1.3700. Meanwhile, support is raised to congestion around 1.300 and extends to 1.3550. However, a close below strong support at the 1.3480~ current year low of 30 January and congestion around 1.3500 is needed to turn sentiment outright negative and extend February 2025 losses towards strong support at 1.3400/20.