Chart USD/CAD Update: Gains to remain limited
The anticipated break below support at the 1.4335 low of 20 December has bounced from 1.4300
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4335 | * | 20 Dec low | |
| R3 | 1.4500 | ** | congestion | S2 | 1.4280 | * | 6 Jan (w) low | |
| R2 | 1.4465 | ** | 19 Dec 2024 (y) high | S3 | 1.4250 | break level | ||
| R1 | 1.4400 | break level | S4 | 1.4200 | break level |
Asterisk denotes strength of level
17:00 GMT - The anticipated break below support at the 1.4335 low of 20 December has bounced from 1.4300, as oversold intraday studies unwind, with prices currently balanced back at 1.4335. Daily readings continue to track lower, however, and broader weekly charts are also under pressure, suggesting any further gains should be limited in renewed selling interest/consolidation beneath the 1.4400 break level. Following choppy trade, fresh losses are looked for. A close below the 1.4335 low of 20 December will add weight to sentiment and open up the 1.4280 weekly low of 6 January. A further close below 1.4250 will turn sentiment negative and confirm a near-term top in place at the 1.4465 year high of 19 December 2024. Meanwhile, a close back above 1.4400 will help to stabilise price action. But a close above 1.4465 is needed to turn sentiment positive and confirm continuation of broad May 2021 gains.