Chart USD/CAD Update: Potential for a test higher
Little change, as prices extend cautious trade around 1.3840
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4040 | ** | 76.4% ret of 2020-2021 fall | S1 | 1.3800 | ** | congestion | |
| R3 | 1.3978 | ** | October 2022 (y) high | S2 | 1.3745 | * | 17 Oct (w) low | |
| R2 | 1.3947 | 5 Aug YTD high | S3 | 1.3700 | congestion | |||
| R1 | 1.3900 | * | figure | S4 | 1.3650 | ** | break level |
Asterisk denotes strength of level
16:55 BST - Little change, as prices extend cautious trade around 1.3840. Intraday studies have ticked up, highlighting potential for a test higher. But mixed daily readings are expected to limit initial scope in consolidation beneath resistance at 1.3900. Broader weekly charts are positive, pointing to room for a later break. But a further close above the 1.3947 current year high of 5 August is needed to turn sentiment positive and open up critical multi-month resistance at the 1.3978 year high of October 2022. Meanwhile, support remains at congestion around 1.3800. A close beneath here would turn sentiment neutral and open up the 1.3745 weekly low of 17 October. A further close beneath here would turn sentiment outright negative and prompt a deeper correction of September gains.