Chart USD/CAD Update: Consolidating test of 1.3800 - background studies rising
The anticipated test of congestion resistance at 1.3800 is giving way to cautious trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3700 | ** | congestion | |
| R3 | 1.3900 | * | break level | S2 | 1.3600 | ** | congestion | |
| R2 | 1.3860 | * | 29 May (w) high | S3 | 1.3550 | * | congestion | |
| R1 | 1.3800 | * | congestion | S4 | 1.3540 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:15 BST - The anticipated test of congestion resistance at 1.3800 is giving way to cautious trade, as intraday studies turn down, with prices currently trading around 1.3765. A minor pullback is developing, as daily readings also come under pressure. But rising weekly charts are expected to limit any downside tests in renewed buying interest/consolidation above congestion support at 1.3700. Following cautious trade, fresh gains are looked for. A break above 1.3800 will open up strong resistance at the 1.3860 weekly high of 29 May. A further close above here is needed to turn sentiment positive and confirm continuation of mid-June gains from 1.3550.