Chart USD/CAD Update: Turning higher in both USD- and CAD-driven trade
Cautious trade is giving way to a break higher in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | congestion | S1 | 1.3800 | congestion | |||
| R3 | 1.4100 | break level | S2 | 1.3745 | ** | 76.4% ret of Sep-Feb rally | ||
| R2 | 1.4000 | * | break level | S3 | 1.3700 | ** | congestion | |
| R1 | 1.3900 | * | congestion | S4 | 1.3647 | * | 19 Sep 2024 (m) high |
Asterisk denotes strength of level
16:20 BST - Cautious trade is giving way to a break higher in both USD- and CAD-driven trade, with prices currently pressuring congestion resistance at 1.3900. Intraday studies are rising and daily readings have also improved, highlighting a more constructive tone and room for further strength in the coming sessions. A close above here will further improve sentiment and open up resistance at 1.4000. Mixed weekly charts, however, could prompt renewed profit-taking taking towards here. Meanwhile, support remains at congestion around 1.3800. But a close below the 1.3745 Fibonacci retracement is needed to turn sentiment negative and confirm continuation of February losses, initially to congestion around 1.3700.