Chart USD/CAD Update: Choppy at highs - daily studies under pressure
Cautious trade has given way to a sharp break lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4560 | * | mid-Mar 2020 (w) high | S1 | 1.4335 | 20 Dec low | ||
| R3 | 1.4500 | ** | congestion | S2 | 1.4280 | intraday low | ||
| R2 | 1.4465 | ** | 19 Dec 2024 (y) high | S3 | 1.4250 | break level | ||
| R1 | 1.4400 | break level | S4 | 1.4200 | congestion |
Asterisk denotes strength of level
16:45 GMT - Cautious trade has given way to a sharp break lower, reaching 1.4280 before bouncing into fresh trade above the 1.4335 low of 20 December. Oversold intraday studies are flattening, suggesting renewed consolidation. But a tick lower in daily stochastics and the bearish daily Tension Indicator are expected to keep price action under pressure. In the coming sessions, fresh losses are looked for. A later close below 1.4335 will confirm a minor distribution top beneath the 1.4465 year high of 19 December 2024 and add weight to sentiment. Focus will then fall on 1.4250, with room for continuation towards 1.4200. Meanwhile, a close above 1.4400 will turn sentiment neutral. But a further close above 1.4465 is needed to improve price action and open up congestion around 1.4500. However, flat overbought weekly stochastics are expected to limit any initial tests in consolidation.