Chart USD/CAD Update: Further gains to remain limited
The break above 1.3800 has extended to reach 1.3865~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | congestion | S1 | 1.3800 | ** | congestion | ||
| R3 | 1.4000 | ** | break level | S2 | 1.3730~ | * | 21 Aug (w) low | |
| R2 | 1.3950 | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R1 | 1.3900 | * | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:50 BST - The break above 1.3800 has extended to reach 1.3865~, where a tick lower in overbought intraday studies is prompting a minor pullback to 1.3840. Oversold daily stochastics are unwinding and the daily Tension Indicator is ticking higher, suggesting room for continuation of recent gains towards congestion resistance at 1.3900. But negative weekly charts should limit any break in renewed selling interest beneath further congestion around 1.3950.
Meanwhile, a close back below congestion support at 1.3800 will turn sentiment neutral. But a further close below 1.3730~ will add weight to sentiment and extend late-June losses towards strong support within the 1.3700/15 range.