Chart USD/CAD Update: Edging higher in CAD-driven trade
Cautious trade is giving way to a break above 1.3800 in CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3800 | * | congestion | |
| R3 | 1.4000 | ** | break level | S2 | 1.3700 | ** | congestion | |
| R2 | 1.3880/00 | ** | 1 Aug (w) high; break level | S3 | 1.3600 | ** | congestion | |
| R1 | 1.3860 | * | 29 May (w) high | S4 | 1.3550 | * | congestion |
Asterisk denotes strength of level
16:20 BST - Cautious trade is giving way to a break above 1.3800 in CAD-driven trade, with prices currently trading around 1.3825. Daily readings have ticked higher, highlighting room for a test of critical resistance at the 1.3860 weekly high of 29 May. But mixed intraday studies are expected to limit any initial tests in further consolidation, before rising weekly charts prompt a break. A close above here will turn sentiment positive and confirm continuation of mid-June gains from 1.3550. Meanwhile, support is raised to congestion around 1.3800 and extends to further congestion around 1.3700. This broad range should underpin any immediate tests lower.