Chart USD/CAD Update: Overstretched studies suggest potential for consolidation
Anticipated gains have reached congestion resistance at 1.4200 in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4290 | ** | 61.8% ret of 2025-2026 fall | S1 | 1.4100 | minor congestion | ||
| R3 | 1.4250 | * | congestion | S2 | 1.4000 | ** | break level | |
| R2 | 1.4248 | ** | late-June YTD highs | S3 | 1.3975 | * | recent range lows | |
| R1 | 1.4200 | ** | congestion | S4 | 1.3950 | congestion |
Asterisk denotes strength of level
15:40 BST - Anticipated gains have reached congestion resistance at 1.4200 in both USD- and CAD-driven trade. Unwinding overbought intraday studies and flat overbought daily stochastics suggest any immediate break could be limited in profit-taking/consolidation beneath the 1.4248 current year high of late-June. However, the positive daily Tension Indicator and rising weekly charts point to a later break and continuation of broad January gains, initially to the 1.4290 Fibonacci retracement
Meanwhile, support remains at congestion around 1.4100 and should continue to underpin any immediate setbacks. A close beneath here, however, will add weight to sentiment and open up 1.4000, where fresh consolidation is expected to appear.