Chart USD/CAD Update: Under pressure
Cautious trade has given way to a sharp selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | congestion | S1 | 1.3800 | ** | congestion | |
| R3 | 1.3950 | ** | 61.8% ret of Nov-Dec fall | S2 | 1.3700 | * | congestion | |
| R2 | 1.3900/20 | ** | break level; 9 Jan (w) high | S3 | 1.3640 | * | 26 Dec (w) low | |
| R1 | 1.3850 | congestion | S4 | 1.3600 | ** | congestion |
Asterisk denotes strength of level
17:05 GMT - Cautious trade has given way to a sharp selling interest, with steady losses currently balanced around 1.3825. Daily stochastics are falling, unwinding negative divergence, and the daily Tension Indicator is also turning down, highlighting room for further losses in the coming sessions. Support is at congestion around 1.3800. A break beneath here will add weight to sentiment and open up further congestion around 1.3700. However, mixed/positive weekly charts could limit any initial tests in consolidation. Meanwhile, resistance is lowered to congestion around 1.3850. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath 1.3900/20.