Chart USD/CAD Update: Consolidating recent losses - studies under pressure
The bounce from just above strong support at the 1.3725 weekly low of 29 August is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4170 | ** | 50% ret of Feb-Jun fall | S1 | 1.3725 | * | 29 Aug (w) low | |
| R3 | 1.4000/20 | ** | break level; 38.2% ret | S2 | 1.3700 | ** | congestion | |
| R2 | 1.3900 | ** | break level | S3 | 1.3600 | ** | congestion | |
| R1 | 1.3800 | * | congestion | S4 | 1.3539 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:50 BST - The bounce from just above strong support at the 1.3725 weekly low of 29 August is giving way to consolidation, as oversold intraday studies unwind. Daily readings continue to point lower, however, and overbought weekly stochastics are turning down, highlighting increased selling interest towards congestion resistance at 1.3800. Following cautious trade, fresh losses are looked for. A later break below 1.3725 will turn sentiment negative and extend late-August losses below 1.3700 towards 1.3600. Meanwhile, a close above 1.3800, if seen, will help to stabilise price action and prompt consolidation beneath 1.3900.