Chart USD/CAD Update: Leaning lower in both USD- and CAD-driven trade
Cautious trade is giving way to a break lower in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4600 | figure | S1 | 1.4300 | * | break level | ||
| R3 | 1.4542 | * | 4 Mar (w) high | S2 | 1.4237 | * | 6 Mar (w) low | |
| R2 | 1.4500 | ** | congestion | S3 | 1.4150 | ** | 14 Feb YTD low | |
| R1 | 1.4400 | * | break level | S4 | 1.4100/10 | ** | congestion; 50% ret |
Asterisk denotes strength of level
16:10 GMT - Cautious trade is giving way to a break lower in both USD- and CAD-driven trade, with prices currently trading just below support at 1.4300. Intraday studies have turned down and daily readings are also under pressure, highlighting room for a test of strong support at the 1.4238 weekly low of 6 March. Broader weekly charts are also coming under pressure, pointing to room for a later break beneath here and extension towards critical support at the 1.4150 current year low of 14 February. Meanwhile, resistance remains at 1.4400. An unexpected close above here will help to stabilise price action and prompt consolidation beneath congestion around 1.4500.