Chart USD/CAD Update: Limited tests higher
Consolidation above the 1.3720~ lows from August-September has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3950 | * | break level | S1 | 1.3720~ | ** | Aug-Sep lows | |
| R3 | 1.3900 | ** | break level | S2 | 1.3680 | ** | 76.4% ret of Jun-Nov rally | |
| R2 | 1.3850 | congestion | S3 | 1.3600 | * | congestion | ||
| R1 | 1.3800 | ** | congestion | S4 | 1.3539 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:20 GMT - Consolidation above the 1.3720~ lows from August-September has given way to a bounce, with prices currently balanced beneath congestion resistance at 1.3800. Oversold daily stochastics and the bearish daily Tension Indicator are flattening, suggesting potential for a test above here. But negative weekly charts and deteriorating longer-term readings are expected to limit scope in renewed selling interest towards further congestion around 1.3850. Following corrective/cautious trade, fresh losses are looked for. A close below 1.3720~ will add weight to price, action and extend November losses towards the 1.3680 Fibonacci retracement. Flat oversold daily stochastics could limit any initial tests in consolidation/short-covering.