Chart USD/CAD Update: Leaning lower
Consolidation beneath the 1.4100/05 barrier is giving way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4298 | ** | April 2020 high | S1 | 1.4000 | * | figure | |
| R3 | 1.4200 | historic congestion | S2 | 1.3958 | * | 1-6 Nov (w) high | ||
| R2 | 1.4173 | * | May 2020 high | S3 | 1.3900 | * | congestion | |
| R1 | 1.4100/05 | * | historic cong; 15 Nov YTD high | S4 | 1.3850 | * | congestion |
Asterisk denotes strength of level
16:55 GMT - Consolidation beneath the 1.4100/05 barrier is giving way to a pullback, as intraday studies continue to turn down, with prices currently balanced around the 1.4040 Fibonacci retracement. A break will open up 1.4000, but rising daily stochastics are flattening, suggesting room for a later break and continuation down to the 1.3958 weekly high of 1-6 November. Weekly stochastics are also flattening in overbought areas, suggesting room for a further break and deeper losses towards congestion around 1.3900. Meanwhile, a close above 1.4100/05 is needed to turn sentiment positive once again and extend broad 2021 gains towards the 1.4173 high of May 2020.