Chart USD/CAD Update: Sharp USD- and CAD-driven bounce
Cautious trade has given way to a sharp USD- and CAD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4160 | ** | 61.8% ret of Oct-Nov fall | S1 | 1.4050 | break level | ||
| R3 | 1.4135 | * | break level | S2 | 1.4000 | ** | congestion | |
| R2 | 1.4115 | * | 50% ret of Oct-Nov fall | S3 | 1.3950 | ** | 61.8% ret of Aug-Oct rally | |
| R1 | 1.4100 | minor congestion | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
16:35 GMT - Cautious trade has given way to a sharp USD- and CAD-driven bounce, with anticipated gains reaching resistance at congestion around 1.4100 and the 1.4115 Fibonacci retracement. Overbought intraday studies are flat, suggesting potential for consolidation around here, before rising daily readings prompt a break and extend November gains towards the 1.4160 retracement. However, negative weekly charts should prompt fresh selling interest/consolidation towards here.
Meanwhile, support is raised to 1.4050. A close beneath here would turn sentiment neutral once again and give way to fresh consolidation/range extension above congestion around 1.4000.