Chart USD/CAD Update: Under pressure in CAD-driven trade
Consolidation around 1.3800 has given way to a break lower in CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4100 | break level | S1 | 1.3700 | ** | congestion | ||
| R3 | 1.4000 | * | break level | S2 | 1.3685 | * | 26 May YTD low | |
| R2 | 1.3900 | * | congestion | S3 | 1.3600 | ** | congestion | |
| R1 | 1.3800 | congestion | S4 | 1.3550 | * | congestion |
Asterisk denotes strength of level
16:10 BST - Consolidation around 1.3800 has given way to a break lower in CAD-driven trade, with prices currently balanced around 1.3750. Intraday studies have turned down and rising daily readings have flattening, highlighting a more cautious tone and room for a test of congestion support at 1.3700. Broader weekly charts have also turned down, pointing to room for a later break beneath here and extension of February losses, initially towards congestion around 1.3600. Meanwhile, a close back above congestion resistance at 1.3800 would delay any immediate downside development and prompt consolidation beneath further congestion around 1.3900.