Chart USD/CAD Update: Lower in USD- and CAD-driven trade
The anticipated break below 1.3850 is currently testing levels below congestion support at 1.3800 in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3800 | ** | congestion | |
| R3 | 1.3950 | congestion | S2 | 1.3730~ | ** | 21 Aug (m) low | ||
| R2 | 1.3900 | * | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | |
| R1 | 1.3850 | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:20 BST - The anticipated break below 1.3850 is currently testing levels below congestion support at 1.3800 in both USD- and CAD-driven trade, with prices trading around 1.3785. Intraday studies are under pressure and positive daily readings are turning down, suggesting room for deeper losses in the coming sessions. A close beneath here will add weight to sentiment and open up critical support at the 1.3715 Fibonacci retracement and the 1.3730~ monthly low of 21 August. A close beneath here will confirm continuation of late-June losses, as prices then target levels below 1.3700.
Meanwhile, resistance is lowered to congestion around 1.3850. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3900.