Chart USD/CAD Update: Consolidating test of 1.4015 Fibonacci retracement - studies under pressure
Consolidation has given way to a test of support at the 1.4015 Fibonacci retracement
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4250 | * | break level | S1 | 1.4015 | ** | 50% ret of Aug-Oct rally | |
| R3 | 1.4200 | ** | congestion | S2 | 1.4000 | ** | congestion | |
| R2 | 1.4135 | * | break level | S3 | 13975 | * | 17-21 Sep range lows | |
| R1 | 1.4100 | minor congestion | S4 | 1.3950 | ** | 61.8% ret of Aug-Oct rally |
Asterisk denotes strength of level
16:20 BST - Consolidation has given way to a test of support at the 1.4015 Fibonacci retracement, where rising intraday studies and flat oversold daily stochastics are prompting fresh consolidation. The daily Tension Indicator continues to fall and broader weekly charts are also under pressure, highlighting room for further losses in the coming sessions. A close beneath here will add weight to sentiment and extend October losses initially towards the 1.3975 range lows from 17-21 September.
Meanwhile, resistance remains at congestion around 1.4100. An unexpected close above here will help to stabilise price action and prompt consolidation beneath 1.4135.