Chart USD/CAD Update: Limited tests higher
Cautious trade has given way to a test higher to resistance at 1.4400
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4335 | * | 20 Dec low | |
| R3 | 1.4500 | ** | congestion | S2 | 1.4280 | * | 6 Jan (w) low | |
| R2 | 1.4465 | ** | 19 Dec 2024 (y) high | S3 | 1.4250 | break level | ||
| R1 | 1.4400 | break level | S4 | 1.4200 | break level |
Asterisk denotes strength of level
16:50 GMT - Cautious trade has given way to a test higher to resistance at 1.4400, where flattening overbought intraday studies are prompting short-term reactions. Daily stochastics are flattening in oversold areas, suggesting potential for a test above here. But the negative daily Tension Indicator and deteriorating weekly charts are expected to limit scope in renewed selling interest towards the 1.4465 year high of 19 December 2024. Following corrective trade, fresh losses are looked for. A later close below support at the 1.4335 low of 20 December will add weight to sentiment and open up the 1.4280 weekly low of 6 January. A further close below 1.4250 will turn sentiment negative and confirm a near-term top in place at the 1.4465 year high of 19 December 2024.