Chart USD/CAD Update: Cautious trade - background studies under pressure
Still little change, as prices extend cautious trade within the 1.3550 - 1.3600 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3725 | * | 6 Feb (m) high | S1 | 1.3550 | congestion | ||
| R3 | 1.3700 | * | congestion | S2 | 1.3500 | ** | congestion | |
| R2 | 1.3650 | congestion | S3 | 1.3480~ | ** | 30 Jan YTD low | ||
| R1 | 1.3600 | * | congestion | S4 | 1.3420 | ** | September 2024 low |
Asterisk denotes strength of level
16:45 GMT - Still little change, as prices extend cautious trade within the 1.3550 - 1.3600 range. Intraday studies are rising and oversold daily stochastics are unwinding, suggesting potential for a test above congestion resistance at 1.3600. But the bearish daily Tension Indicator and negative weekly charts are expected to limit scope in renewed selling interest/consolidation towards further congestion around 1.3650. Following cautious trade, a break below congestion support at 1.3550 is looked for. However, a further close below strong support at the 1.3480~ current year low of 30 January and congestion around 1.3500 is needed to turn sentiment outright negative and extend February 2025 losses towards strong support at 1.3400/20.