Chart USD/CAD Update: Focus on 1.3890/00 - studies rising
Anticipated gains are meeting selling interest just beneath strong resistance at the 1.3890 Fibonacci retracement and the 1.3900 break level
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4020 | ** | 76.4% ret of Nov-Dec fall | S1 | 1.3850 | congestion | ||
| R3 | 1.4000 | ** | congestion | S2 | 1.3800 | ** | congestion | |
| R2 | 1.3950 | ** | 61.8% ret of Nov-Dec fall | S3 | 1.3700 | * | congestion | |
| R1 | 1.3890/00 | ** | 50% ret; break level | S4 | 1.3640 | * | 26 Dec (w) low |
Asterisk denotes strength of level
16:35 GMT - Anticipated gains are meeting selling interest just beneath strong resistance at the 1.3890 Fibonacci retracement and the 1.3900 break level, as intraday studies turn down. A minor pullback is possible, but rising daily readings and a tick higher in oversold weekly stochastics are expected to limit scope in renewed buying interest towards congestion support at 1.3850. In the coming sessions, further gains are possible. A break above 1.3890/00 will extend December gains towards the 1.3950 retracement, where already overbought daily stochastics could prompt renewed selling interest. Meanwhile, a close below 1.3850 would turn sentiment neutral and give way to consolidation above 1.3800.