Chart USD/CAD Update: Higher in CAD-dominant trade
Cautious trade is giving way to a fresh break higher in CAD-dominant trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4130 | ** | 28 Jul (w) high, range highs | S1 | 1.4000 | ** | break level | |
| R3 | 1.4125 | ** | 76.4% ret of Jun-Aug fall | S2 | 1.3975 | * | recent range lows | |
| R2 | 1.4080 | * | late-Jul range lows | S3 | 1.3950 | congestion | ||
| R1 | 1.4050 | ** | 61.8% ret, congestion | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
16:55 BST - Cautious trade is giving way to a fresh break higher in CAD-dominant trade, with the break above 1.4000 improving sentiment and putting focus on strong resistance at 1.4050. Mixed intraday studies and flat overbought daily stochastics suggest any immediate tests could give way to consolidation, before improving weekly charts prompt further gains. A close above here will extend late-August gains towards resistance at the 1.4080 range lows from late-July.
Meanwhile, support is at 1.4000 and extends to the 1.3975 recent range lows. A close beneath here, if seen, will add weight to sentiment and prompt a deeper retracement initially to congestion around 1.3950.