Published: 2024-10-04T15:46:51.000Z
Chart USD/CAD Update: Sentiment remains cautiously bullish
Senior Technical Strategist
255
The anticipated break above 1.3550 has reached 1.3590
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.3745 | ** | 61.8% ret of Aug-Sep fall | S1 | 1.3550 | intraday break level | ||
R3 | 1.3680 | ** | 50% ret of Aug-Sep fall | S2 | 1.3500 | * | congestion | |
R2 | 1.3650 | ** | 19 Sep (m) high, break level | S3 | 1.3460 | * | intraday break level | |
R1 | 1.3600 | ** | break level | S4 | 1.3420 | 25 Sep (w) low |
Asterisk denotes strength of level
16:30 BST - The anticipated break above 1.3550 has reached 1.3590, where flat overbought intraday studies are prompting short-term reactions. Daily readings continue to strengthen, highlighting room for further gains, with a later break above 1.3600 targeting strong resistance at 1.3650. However, already overbought daily stochastics and mixed weekly charts should limit any initial tests in consolidation. But if broken, September gains will then focus on the 1.3680 Fibonacci retracement, where more significant reactions are looked for. Meanwhile, a break back below 1.3550 will turn sentiment neutral and prompt consolidation above congestion support at 1.3500.