Chart USD/CAD Update: Consolidating August gains - background studies improving
Consolidation has given way to a minor push higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4290 | ** | 61.8% ret of 2025-2026 fall | S1 | 1.4100 | minor congestion | ||
| R3 | 1.4250 | * | congestion | S2 | 1.4000 | ** | break level | |
| R2 | 1.4248 | ** | late-June YTD highs | S3 | 1.3975 | * | recent range lows | |
| R1 | 1.4200 | ** | congestion | S4 | 1.3950 | congestion |
Asterisk denotes strength of level
16:15 BST - Consolidation has given way to a minor push higher, with prices reaching 1.4155 before settling into fresh consolidation around 1.4140. Intraday studies are turning down and overbought daily stochastics are flat, suggesting room for a drift lower towards congestion support at 1.4100. However, the positive daily Tension Indicator and rising weekly charts should limit any tests in renewed buying interest/consolidation. A close beneath here, however, will add weight to sentiment and open up 1.4000, where fresh consolidation is expected to appear.
Meanwhile, resistance remains at congestion around 1.4200. But a close above critical resistance at the 1.4248 current year high of late-June is needed, not yet seen, to improve sentiment and confirm continuation of January gains.