Chart USD/CAD Update: Limited corrective gains
Cautious trade above support at 1.4175 is giving way to a move higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4690 | ** | January 2016 (y) high | S1 | 1.4175 | break level | ||
| R3 | 1.4500 | ** | congestion | S2 | 1.4100/10 | ** | congestion; 50% ret | |
| R2 | 1.4400 | break level | S3 | 1.4000 | ** | break level | ||
| R1 | 1.4300 | * | congestion lows | S4 | 1.3950 | ** | 61.8% ret of Sep-Feb rally |
Asterisk denotes strength of level
16:20 GMT - Cautious trade above support at 1.4175 is giving way to a move higher, as intraday studies continue to improve, with prices currently trading around 1.4220. Daily readings are also turning up, suggesting room for continuation towards intraday congestion around 1.4260. But negative weekly charts should limit any further strength in selling interest/consolidation beneath the 1.4300 congestion lows. Following corrective trade, fresh losses are looked for. A close below 1.4175 will add weight to sentiment and extend February losses towards strong support at 1.4100/10. Already oversold weekly stochastics could prompt short-covering/consolidation towards here.