Chart USD/CAD Update: Consolidating test of strong support at the 1.3630 Fibonacci retracement
The anticipated test of support at the 1.3630 Fibonacci retracement is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3850 | * | congestion | S1 | 1.3630 | ** | 76.4% ret of March rally | |
| R3 | 1.3800 | * | congestion | S2 | 1.3600 | ** | congestion | |
| R2 | 1.3740 | * | break level | S3 | 1.3525 | * | 9 Mar (m) low | |
| R1 | 1.3700 | ** | congestion | S4 | 1.3480~ | ** | 30 Jan YTD low |
Asterisk denotes strength of level
17:05 BST - The anticipated test of support at the 1.3630 Fibonacci retracement is giving way to consolidation, as oversold daily stochastics flatten, with prices currently trading around 1.3650. The daily Tension Indicator continues to track lower and broader weekly charts are falling, highlighting room for further losses in the coming sessions. A close below 1.3630 will add weight to sentiment and extend late-March losses towards congestion around 1.3600. Meanwhile, resistance remains at congestion around 1.3700. A close above here, would help to stabilise price action and prompt consolidation beneath the 1.3740 break level.