Chart USD/CAD Update: Smart reversal consolidating test of the 1.3958 current year high
The anticipated break below 1.3850 has bounced sharply from above congestion support at 1.3800
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4040 | ** | 76.4% ret of 2020-2021 fall | S1 | 1.3900 | break level | ||
| R3 | 1.4000 | figure | S2 | 1.3850 | break level | |||
| R2 | 1.3978 | ** | October 2022 (y) high | S3 | 1.3800 | ** | congestion | |
| R1 | 1.3958 | ** | 1 Nov YTD high | S4 | 1.3745 | * | 17 Oct (w) low |
Asterisk denotes strength of level
16:45 GMT - The anticipated break below 1.3850 has bounced sharply from above congestion support at 1.3800, in both USD- and CAD-driven trade, with prices currently consolidating the test of the 1.3958 current year high of 1 November. Intraday studies are mixed/positive, suggesting potential for a break above here. But negative daily readings are expected to limit initial scope in renewed selling interest towards the 1.3978 year high of 1 October. Broader weekly charts are positive, but any continuation beyond here should meet profit-taking towards critical resistance at the 1.4040 Fibonacci retracement. Meanwhile, support is raised to 1.3900. A close beneath here would turn sentiment neutral and prompt consolidation above 1.3850.