Chart USD/CAD Update: Consolidating losses - studies under pressure
Steady selling interest is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4250 | * | break level | S1 | 1.4015 | ** | 50% ret of Aug-Oct rally | |
| R3 | 1.4200 | ** | congestion | S2 | 1.4000 | ** | congestion | |
| R2 | 1.4135 | * | break level | S3 | 13975 | * | 17-21 Sep range lows | |
| R1 | 1.4100 | minor congestion | S4 | 1.3950 | ** | 61.8% ret of Aug-Oct rally |
Asterisk denotes strength of level
16:15 BST - Steady selling interest is giving way to consolidation, as intraday studies turn higher, with prices currently balanced above the 1.4030~ low of 20 October. Daily stochastics are flat in oversold areas, highlighting room for further cautious trade, before the bearish daily Tension Indicator and deteriorating weekly charts prompt fresh losses. A later close below strong support within congestion around 1.4000 and the 1.4015 Fibonacci retracement will add weight to sentiment and extend October losses initially towards the 1.3975 range lows from 17-21 September.
Meanwhile, resistance remains at congestion around 1.4100. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath 1.4135.