Published: 2025-06-26T15:49:09.000Z
Chart USD/CAD Update: Smart reversal
Senior Technical Strategist
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Anticipated minor tests higher have not been seen
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3900 | * | congestion | S1 | 1.3600 | ** | congestion | |
| R3 | 1.3860 | * | 29 May (w) high | S2 | 1.3550 | * | congestion | |
| R2 | 1.3800 | congestion | S3 | 1.3500 | * | congestion | ||
| R1 | 1.3700 | ** | congestion | S4 | 1.3420 | ** | 25 Sep (m) low |
Asterisk denotes strength of level
16:30 BST - Anticipated minor tests higher have not been seen, as prices reverse sharply, breaking below 1.3700 to currently trade around 1.3635. Overbought daily stochastics are unwinding and the rising daily Tension Indicator is showing signs of flattening, suggesting a deterioration in sentiment and room for further losses towards congestion support at 1.3600. Beneath here is 1.3550. But mixed weekly charts are expected to limit any initial tests in fresh consolidation. Meanwhile, a close back above congestion resistance at 1.3700, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3800.