Chart USD/CAD Update: Minor corrective trade before prices continue lower
Anticipated losses have reached 1.3730
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3730 | intraday low | ||
| R3 | 1.3950 | congestion | S2 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R2 | 1.3900 | * | congestion | S3 | 1.3700 | ** | congestion | |
| R1 | 1.3800 | ** | congestion | S4 | 1.3650 | congestion |
Asterisk denotes strength of level
16:20 BST - Anticipated losses have reached 1.3730, where unwinding oversold intraday studies are prompting short-covering and a minor bounce. Immediate focus is on congestion resistance at 1.3800. But negative daily readings and bearish weekly charts should limit any tests above here in renewed selling interest beneath further congestion around 1.3900.
Following cautious/corrective trade, fresh losses ae looked for. A break below 1.3730 will extend late-June losses towards support within congestion around 1.3700 and the 1.3715 Fibonacci retracement. However, already oversold daily stochastics could limit any initial tests in short-covering/consolidation before further losses unfold.