Chart USD/CAD Update: Prices remain under pressure
Cautious trade is giving way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3900 | * | congestion | S1 | 1.3700 | ** | cong, 61.8% ret | |
| R3 | 1.3850 | * | congestion | S2 | 1.3650 | * | congestion | |
| R2 | 1.3800 | * | congestion | S3 | 1.3630 | ** | 76.4% ret of March rally | |
| R1 | 1.3740 | * | break level | S4 | 1.3600 | ** | congestion |
Asterisk denotes strength of level
16:35 BST - Cautious trade is giving way to anticipated losses, with focus on strong support at 1.3700. Daily readings continue to track lower and overbought weekly stochastics are unwinding, highlighting room for further losses in the coming sessions. A close below here will add weight to sentiment and extend late-March losses towards congestion around 1.3650. Still lower is the 1.3630 retracement, where already oversold daily stochastics could prompt significant short-covering/consolidation. Meanwhile, resistance is lowered to the 1.3740 break level. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath congestion around 1.3800.