Chart USD/CAD Update: Approaching strong resistance at 1.3965/85
Choppy trade around 1.3900 has given way to fresh gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | break level | S1 | 1.3900 | ** | congestion | ||
| R3 | 1.4000 | ** | break level | S2 | 1.3850 | congestion | ||
| R2 | 1.3985 | ** | 76.4% ret of Nov-May fall | S3 | 1.3800 | * | congestion | |
| R1 | 1.3965 | ** | 31 Mar YTD high | S4 | 1.3770 | ** | 29 May (w) low |
Asterisk denotes strength of level
16:30 BST - Choppy trade around 1.3900 has given way to fresh gains, with prices approaching strong resistance at the 1.3965 current year high of 31 May in both USD- and CAD-driven trade. Just higher is the 1.3985 Fibonacci retracement. Rising daily readings highlight potential for a test of here. But already overbought daily stochastics could limit any initial tests in consolidation, before rising weekly charts prompt further gains. A close above here will improve sentiment and extend January gains beyond 1.4000. Meanwhile, a close back below congestion support at 1.3900 will help to stabilise sentiment and prompt consolidation above further congestion around 1.3850.