Chart USD/CAD Update: Lower in both USD- and CAD-driven trade
Cautious trade is giving way to further losses in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3985 | ** | 76.4% ret of Nov-Jan fall | S1 | 1.3795/00 | * | 38.2% ret; congestion | |
| R3 | 1.3965 | * | 31 Mar YTD high | S2 | 1.3745 | ** | 50% ret of March rally | |
| R2 | 1.3900 | * | congestion | S3 | 1.3700 | ** | cong, 61.8% ret | |
| R1 | 1.3850 | * | congestion | S4 | 1.3650 | * | congestion |
Asterisk denotes strength of level
16:35 BST - Cautious trade is giving way to further losses in both USD- and CAD-driven trade, with focus on strong support at the 1.3795 Fibonacci retracement and congestion around 1.3800. Daily readings are bearish and overbought weekly stochastics are flattening, highlighting room for a break beneath here and extension of late-March losses towards the 1.3745 retracement. However, the positive weekly Tension Indicator could limit any initial tests in consolidation. Meanwhile, resistance is lowered to congestion around 1.3850. A close back above here, if seen, would help to stabilise sentiment and prompt consolidation beneath further congestion around 1.3900.