Chart USD/CAD Update: Consolidating gains
Anticipated minor gains have been pushed back from 1.3860
| 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
16:30 BST - Anticipated minor gains have been pushed back from 1.3860, as overbought intraday studies turn down and unwind negative divergence, with prices currently balanced around congestion support at 1.3800. Daily readings continue to rise, however, suggesting any immediate break should be limited in consolidation above further congestion around 1.3700, before deteriorating weekly charts extend losses further. A close below 1.3700 will turn sentiment negative and extend February losses initially towards congestion around 1.3600. Meanwhile, resistance remains at congestion around 1.3900. An unexpected close above here will delay downside tests and prompt renewed consolidation beneath 1.4000.