Published: 2025-05-13T16:04:18.000Z
Chart USD/CAD Update: Consolidating gains
Senior Technical Strategist
1
The test of resistance at 1.4000 is giving way to consolidation
| 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
16:45 BST - The test of resistance at 1.4000 is giving way to consolidation, as intraday studies turn down, with prices currently trading around 1.3955. A minor test lower is possible, as overbought daily stochastics also flatten. But the rising daily Tension Indicator and a tick higher in oversold weekly stochastics are expected to limit scope in renewed consolidation above congestion support at 1.3900. Following cautious trade, higher levels are looked for. But a close above 1.4000 is needed to turn sentiment positive and extend May gains initially towards the 1.4050 Fibonacci retracement.