Chart USD/CAD Update: Cautious trade - daily studies leaning lower
Still little change, as mixed intraday studies keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3700 | ** | congestion | |
| R3 | 1.3900 | * | break level | S2 | 1.3600 | ** | congestion | |
| R2 | 1.3860 | * | 29 May (w) high | S3 | 1.3550 | * | congestion | |
| R1 | 1.3800 | * | congestion | S4 | 1.3540 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:50 BST - Still little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation around 1.3775. Overbought daily stochastics are turning down and the positive daily Tension Indicator is under pressure, highlighting room for a test of congestion support at 1.3700. However, rising weekly charts should limit any initial break beneath here in renewed buying interest/consolidation above further congestion around 1.3600. Meanwhile, resistance remains at congestion around 1.3800. But a close above the 1.3860 weekly high of 29 May is needed to turn sentiment positive and confirm continuation of June gains, initially to 1.3900.