Chart USD/CAD Update: Edging higher
Choppy trade is giving way to fresh gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3800 | ** | congestion | S1 | 1.3650 | minor congestion | ||
| R3 | 1.3755 | ** | 61.8% ret of Jan-Feb fall | S2 | 1.3600 | * | congestion | |
| R2 | 1.3725 | * | 6 Feb (w) high | S3 | 1.3500 | ** | congestion | |
| R1 | 1.3700 | * | congestion | S4 | 1.3480~ | ** | 30 Jan YTD low |
Asterisk denotes strength of level
16:50 GMT - Choppy trade is giving way to fresh gains, as intraday studies rise, with prices currently trading around 1.3780. Daily readings continue to track higher, highlighting room for a test of congestion resistance at 1.3700 and the 1.3725 weekly high of 6 February. A close above here would improve sentiment and extend February gains towards the 1.3755 Fibonacci retracement. But already overbought daily stochastics and mixed/negative weekly charts should limit any initial tests in profit-taking/consolidation. Meanwhile, a close back below congestion support at 1.3650 will turn sentiment neutral and give way to fresh consolidation above further congestion around 1.3600.