Chart USD/CAD Update: Lower in both USD- and CAD-driven trade
Cautious trade around 1.3900 has given way to a USD- and CAD-driven pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | congestion | S1 | 1.3870 | * | congestion lows | |
| R3 | 1.3985 | ** | 76.4% ret of Nov-Jan fall | S2 | 1.3850 | * | congestion | |
| R2 | 1.3965 | * | 31 Mar YTD high | S3 | 1.3800 | * | congestion | |
| R1 | 1.3900 | * | congestion | S4 | 1.3700 | * | congestion |
Asterisk denotes strength of level
16:45 BST - Cautious trade around 1.3900 has given way to a USD- and CAD-driven pullback, with prices currently trading around 1.3880. Intraday studies are negative and overbought daily stochastics are unwinding, highlighting room for deeper losses towards congestion support at 1.3850. The rising daily Tension Indicator and positive weekly charts should limit any deeper losses, however, with congestion around 1.3800 to underpin tests below 1.3850. Meanwhile, resistance is lowered to congestion around 1.3900. But a close above the 1.3965 current year high of 31 March is needed to turn sentiment positive and extend January gains beyond congestion resistance at 1.4000.