Chart USD/CAD Update: Higher in choppy trade
Choppy trade around strong support at 1.3900 has given way to a sharp USD- and CAD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | * | congestion | S1 | 1.3950 | * | pivot | |
| R3 | 1.4170 | ** | 50% ret of Feb-Jun fall | S2 | 1.3900 | ** | break level, 50% ret | |
| R2 | 1.4080 | ** | 14 Oct (w) high | S3 | 1.3865 | ** | 61.8% ret of Aug-Oct rally | |
| R1 | 1.4000 | * | break level | S4 | 1.3800/10 | ** | cong, 76.4% ret |
Asterisk denotes strength of level
16:20 GMT - Choppy trade around strong support at 1.3900 has given way to a sharp USD- and CAD-driven bounce, with prices currently consolidating the test of resistance at 1.4000. Oversold daily stochastics are unwinding, highlighting room for a retest above here. But the negative daily Tension Indicator and deteriorating weekly charts should limit scope in renewed selling interest towards strong resistance at the 1.4080 weekly high of 14 October. In the coming sessions, cautious trade is expected to give way to fresh losses. Immediate support is at 1.3950. But a close below 1.3900 will add weight to sentiment and extend losses towards the 1.3865 Fibonacci retracement. Beneath here is 1.3800/10, where already oversold daily stochastics could prompt consolidation/short-covering.