Chart USD/CAD Update: Scope for still higher
Cautious trade has given way to a drift into resistance within the 1.3925 Fibonacci retracement and congestion around 1.3950
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3900 | * | congestion | |
| R3 | 1.3985 | ** | 50% ret of Jun-Aug fall | S2 | 1.3850 | congestion | ||
| R2 | 1.3950 | congestion | S3 | 1.3800 | ** | congestion | ||
| R1 | 1.3925 | * | 38.2% ret of Jun-Aug fall | S4 | 1.3730~ | ** | 21 Aug (m) low |
Asterisk denotes strength of level
16:10 BST - Cautious trade has given way to a drift into resistance within the 1.3925 Fibonacci retracement and congestion around 1.3950. Mixed intraday studies and flattening overbought daily stochastics are expected to limit initial tests in fresh consolidation, before the rising daily Tension Indicator and unwinding oversold weekly stochastics prompt further gains. A close above 1.3925 will improve sentiment and extend late-August gains towards the 1.3985 retracement. However, mixed/negative longer-term charts could prompt profit-taking/consolidation towards here.
Meanwhile, support remains at congestion around 1.3900. A close beneath here, if seen, will stabilise price action and prompt consolidation above further congestion around 1.3850.