Chart USD/CAD Update: Room for fresh tests higher in choppy trade
The anticipated test of congestion resistance at 1.3650 has extended in choppy trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3800 | ** | congestion | S1 | 1.3600 | * | congestion | |
| R3 | 1.3725 | * | 6 Feb (w) high | S2 | 1.3500 | ** | congestion | |
| R2 | 1.3700 | * | congestion | S3 | 1.3480~ | ** | 30 Jan YTD low | |
| R1 | 1.3650 | minor congestion | S4 | 1.3420 | ** | September 2024 low |
Asterisk denotes strength of level
16:50 GMT - The anticipated test of congestion resistance at 1.3650 has extended in choppy trade, with prices reaching 1.3690 before falling sharply back to 1.3650~ as overbought intraday studies unwind. Daily readings continue to track higher, highlighting room for fresh tests higher towards congestion around 1.3700 and the 1.3725 weekly high of 6 February. But mixed/negative weekly charts and bearish longer-term readings should limit any tests in renewed selling interest. Following cautious/choppy trade, fresh losses are looked for. A break below 1.3600 will add weight to sentiment and open up congestion around 1.3500. But a close below the 1.3480~ current year low of 30 January will add weight to sentiment and extend February 2025 losses below the 1.3480~ current year low of 30 January towards the 1.3420 low of September 2024.