Chart USD/CAD Update: Choppy trade - studies under pressure
Consolidation around congestion support at 1.3800 has given way to a bounce in CAD-dominant trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3800 | ** | congestion | |
| R3 | 1.3950 | congestion | S2 | 1.3730~ | ** | 21 Aug (m) low | ||
| R2 | 1.3900 | * | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | |
| R1 | 1.3850 | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:25 BST - Consolidation around congestion support at 1.3800 has given way to a bounce in CAD-dominant trade, with prices currently trading around 1.3835. Intraday studies are rising, suggesting potential for a retest above congestion resistance at 1.3850. But negative daily readings and mixed/negative weekly charts should prompt renewed selling interest towards further congestion around 1.3900.
Following cautious/corrective trade, fresh losses are looked for. Support remains at 1.3800. A later close back beneath here will add weight to sentiment and open up critical support at the 1.3715 Fibonacci retracement and the 1.3730~ monthly low of 21 August. A further close beneath here will confirm continuation of late-June losses, as prices then target levels below 1.3700.