Published: 2025-09-04T15:37:22.000Z
Chart USD/CAD Update: Strong resistance at 1.3900
Senior Technical Strategist
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Cautious trade has given way to a break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | ** | congestion | S1 | 1.3800 | * | congestion | |
| R3 | 1.4170 | ** | 50% ret of Feb-Jun fall | S2 | 1.3725 | * | 29 Aug (w) low | |
| R2 | 1.4000/20 | ** | break level; 38.2% ret | S3 | 1.3700 | ** | congestion | |
| R1 | 1.3900 | ** | break level | S4 | 1.3600 | ** | congestion |
Asterisk denotes strength of level
16:20 BST - Cautious trade has given way to a break higher, with prices currently trading around 1.3840. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting room for continuation beyond 1.3850 towards resistance at 1.3900. However, weekly stochastics are flat in overbought areas, pointing to profit-taking pressure towards here. Meanwhile, support is raised to congestion around 1.3800. A break back beneath here, if seen, will turn sentiment neutral once again and give way to consolidation above strong support at 1.3700/25.