Chart USD/CAD Update: Cautious trade - gains to remain limited
Little change, as prices extend cautious trade around 1.3650
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3900 | * | congestion | S1 | 1.3600 | ** | congestion | |
| R3 | 1.3860 | * | 29 May (w) high | S2 | 1.3550 | * | congestion | |
| R2 | 1.3800 | congestion | S3 | 1.3500 | * | congestion | ||
| R1 | 1.3700 | ** | congestion | S4 | 1.3420 | ** | 25 Sep (m) low |
Asterisk denotes strength of level
16:25 BST - Little change, as prices extend cautious trade around 1.3650. Intraday studies are edging higher, suggesting room for a test of congestion resistance at 1.3700. But unwinding overbought daily stochastics and the deteriorating daily Tension Indicator are expected to limit any tests in renewed selling interest. Following corrective trade, fresh losses are looked for. A later break below congestion support at 1.3600 will open up further congestion around 1.3550. But mixed weekly charts are expected to limit any initial tests in fresh consolidation, before negative longer-term charts prompt a break. Meanwhile, a close back above congestion resistance at 1.3700, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3800.