Chart USD/CAD Update: Edging higher in range
Cautious trade is giving way to a break above 1.4400
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4400 | break level | ||
| R3 | 1.4560 | * | mid-Mar 2020 (w) high | S2 | 1.4335 | 20 Dec low | ||
| R2 | 1.4500 | ** | congestion | S3 | 1.4250 | break level | ||
| R1 | 1.4465 | ** | 19 Dec 2024 (y) high | S4 | 1.4200 | congestion |
Asterisk denotes strength of level
16:45 GMT - Cautious trade is giving way to a break above 1.4400, with prices currently balanced around 1.4420. Intraday studies are positive, highlighting potential for a test of critical resistance at the 1.4465 year high of 19 December, but negative daily readings are expected to limit any initial tests in consolidation. Longer-term charts are positive, but a close above here is needed to turn sentiment positive and open up congestion around 1.4500. Still higher is the 1.4560 weekly high of mid-March 2020. Meanwhile, support is down to the 1.4335 low of 20 December. A break beneath here, if seen, will open up 1.4250, but rising weekly charts are expected to limit any tests in fresh buying interest.