Chart USD/CAD Update: Extending gains in both USD- and CAD-driven trade
Minor consolidation is giving way to further gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.420 | ** | congestion | S1 | 1.4000 | ** | break level | |
| R3 | 1.4130 | ** | 28 Jul (w) high, range highs | S2 | 1.3975 | * | recent range lows | |
| R2 | 1.4125 | ** | 76.4% ret of Jun-Aug fall | S3 | 1.3950 | congestion | ||
| R1 | 1.4080 | * | late-Jul range lows | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
16:15 BST - Minor consolidation is giving way to further gains, with prices approaching resistance at the 1.4080 range lows from late-July in both USD- and CAD-driven trade. Intraday studies have ticked higher and the daily Tension Indicator continues to rise, highlighting room for a break and continuation of late-August gains towards the 1.4125 Fibonacci retracement the 1.4130 range highs. However, flat overbought daily stochastics could limit any initial tests in profit-taking/consolidation.
Meanwhile, support is at 1.4000 and extends to the 1.3975 recent range lows. A close beneath here, if seen, will add weight to sentiment and prompt a deeper retracement initially to congestion around 1.3950.