Chart USD/CAD Update: Room for lower
The anticipated test below 1.4000 has bounced from 1.3980
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4298 | ** | April 2020 high | S1 | 1.4000 | * | figure | |
| R3 | 1.4200 | historic congestion | S2 | 1.3958 | * | 1-6 Nov (w) high | ||
| R2 | 1.4173 | * | May 2020 high | S3 | 1.3927 | * | 25 Nov (w) low | |
| R1 | 1.4100/05 | * | historic cong; 15 Nov (w) high | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
17:05 GMT - The anticipated test below 1.4000 has bounced from 1.3980, as oversold intraday studies unwind, with prices once again trading above 1.4000. A test higher is possible, but negative daily readings and a tick lower in overbought weekly stochastics are expected to limit scope in renewed selling interest beneath strong resistance at 1.4100/05. In the coming sessions, lower levels are expected to attract, with a close below 1.4000 adding weight to sentiment and opening up the the 1.3958 weekly high of 1-6 November. However, a further close below the 1.3927 weekly low of 25 November is needed to turn sentiment outright negative and extend November losses initially to congestion around 1.3900.. Meanwhile, a close above 1.4100/05 would turn sentiment positive and extend June 2021 gains back to 1.4173.