Chart USD/CAD Update: Leaning lower in range
Consolidation around resistance at 1.3840 is giving way to a minor pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3965 | ** | 31 Mar YTD high | S1 | 1.3800 | * | congestion | |
| R3 | 1.3900 | ** | congestion | S2 | 1.3770 | ** | 29 May (w) low | |
| R2 | 1.3870 | ** | 76.4% ret of Mar-May fall | S3 | 1.3750 | congestion | ||
| R1 | 1.3840 | intraday break level | S4 | 1.3730 | * | recent lows |
Asterisk denotes strength of level
16:40 BST - Consolidation around resistance at 1.3840 is giving way to a minor pullback, as overbought intraday studies unwind, with prices currently trading around 1.3820. Daily readings are mixed/negative, highlighting room for a test of congestion support at 1.3800. But rising weekly charts should limit any immediate break in consolidation above the 1.3770 weekly low of 29 May. A close beneath here, however, will add weight to sentiment and extend losses into the 1.3730 - 1.3750 range. Meanwhile, resistance is up to the 1.3870 Fibonacci retracement. A close above here is needed to turn sentiment positive and extend May gains towards congestion around 1.3900.