Published: 2025-05-12T15:47:02.000Z
Chart USD/CAD Update: Higher in both USD- and CAD-driven trade
Senior Technical Strategist
2
Cautious trade has given way to a sharp bounce in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4150 | ** | 50% ret of Mar-May fall | S1 | 1.3900 | * | congestion | |
| R3 | 1.4100 | break level | S2 | 1.3800 | congestion | |||
| R2 | 1.4050 | ** | 38.2% ret of Mar-May fall | S3 | 1.3745 | ** | 76.4% ret of Sep-Feb rally | |
| R1 | 1.4000 | * | break level | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:35 BST - Cautious trade has given way to a sharp bounce in both USD- and CAD-driven trade, with prices currently pressuring resistance at 1.4000. Intraday studies have turned higher and daily reading are positive, highlighting room for a break and extension of May gains towards the 1.4050 Fibonacci retracement. Flattening overbought daily stochastics could limit any initial tests in consolidation, before rising oversold weekly stochastics prompt a break. Meanwhile, support remains at congestion around 1.3900 and should underpin any immediate setbacks.