Chart USD/CAD Update: Extending gains in USD- and CAD-driven trade
Cautious trade is giving way to further gains in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4290 | ** | 61.8% ret of 2025-2026 fall | S1 | 1.4100 | minor congestion | ||
| R3 | 1.4250 | * | congestion | S2 | 1.4000 | ** | break level | |
| R2 | 1.4248 | ** | late-June YTD highs | S3 | 1.3975 | * | recent range lows | |
| R1 | 1.4200 | ** | congestion | S4 | 1.3950 | congestion |
Asterisk denotes strength of level
16:35 BST - Cautious trade is giving way to further gains in both USD- and CAD-driven trade, with prices currently trading around 1.4175. Immediate focus is on congestion resistance at 1.4200. But flat overbought daily stochastics are expected to limit any initial tests in fresh consolidation, before the positive daily Tension Indicator and rising weekly charts prompt a break. Focus will then turn to critical resistance at the 1.4248 current year highs of late-June, with a further close above here turning sentiment positive and confirming continuation of broad January gains.
Meanwhile, support remains at congestion around 1.4100 and should continue to underpin any immediate setbacks. A close beneath here, however, will add weight to sentiment and open up 1.4000, where fresh consolidation is expected to appear.