Chart USD/CAD Update: Extending gains in CAD-driven trade
Anticipated gains have reached 1.4135, where mixed intraday studies are prompting choppy trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4215 | ** | 76.4% ret of Oct-Nov fall | S1 | 1.4100 | minor congestion | ||
| R3 | 1.4200 | ** | congestion | S2 | 1.4050 | break level | ||
| R2 | 1.4160 | ** | 61.8% ret of Oct-Nov fall | S3 | 1.4000 | ** | congestion | |
| R1 | 1.4135 | 6 Nov (w) high | S4 | 1.3950 | ** | 61.8% ret of Aug-Oct rally |
Asterisk denotes strength of level
16:45 GMT - Anticipated gains have reached 1.4135, where mixed intraday studies are prompting choppy trade. The test below 1.4100 has bounced from 1.4075, with fcus turning back to 1.4135. Rising daily stochastics and the positive daily Tension Indicator highlight room for a break above here and continuation of near-term CAD-driven gains towards the 1.4160 Fibonacci retracement. However, mixed weekly charts should limit any break in profit-taking/consolidation beneath strong resistance at congestion around 1.4200 and the 1.4215 retracement.
Meanwhile, a close below 1.4100, if seen, will turn sentiment neutral and give way to consolidation above 1.4050.