Chart USD/CAD Update: Gains to remain limited
Cautious trade above 1.3800 is giving way to a test higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3950 | congestion | S1 | 1.3800 | ** | congestion | ||
| R3 | 1.3900 | * | congestion | S2 | 1.3730~ | ** | 21 Aug (m) low | |
| R2 | 1.3870~ | 4 Sep high | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R1 | 1.3850 | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
17:20 BST - Cautious trade above 1.3800 is giving way to a test higher, with prices reaching 1.3835 before settling into fresh consolidation. The daily Tension Indicator is flat, suggesting room for consolidation, before falling daily stochastics and mixed/negative weekly charts prompt fresh losses. A later break back below 1.3800 will open up critical support at the 1.3715 Fibonacci retracement and the 1.3730~ monthly low of 21 August. A close beneath here will add weight to sentiment and confirm continuation of late-June losses, as the 1.3665 retracement then attracts.
Meanwhile, resistance is at congestion around 1.3850. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3900.