Chart USD/CAD Update: Consolidating - gains to remain limited
Little change, as mixed intraday studies keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | * | break level | S1 | 1.3635 | * | 5 Jun YTD low | |
| R3 | 1.3900 | * | congestion | S2 | 1.3600 | ** | congestion | |
| R2 | 1.3800 | congestion | S3 | 1.3550 | * | congestion | ||
| R1 | 1.3700 | ** | congestion | S4 | 1.3550 | * | congestion |
Asterisk denotes strength of level
16:25 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation beneath congestion resistance at 1.3700. Oversold daily stochastics and the negative daily Tension Indicator are flattening, suggesting room for a test above here. But negative weekly readings are expected to limit scope in renewed selling interest beneath further congestion around 1.3800. Following cautious trade, fresh losses are looked for. A later break below support at the 1.3635 current year low of 5 June will add weight to sentiment and extend February losses towards congestion support at 1.3600. Further slippage towards 1.3550 cannot be ruled out.