Chart USD/CAD Update: Further gains in both USD- and CAD-driven trade
Cautious trade has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | ** | congestion | S1 | 1.4000 | ** | break level | |
| R3 | 1.4130 | ** | 28 Jul (w) high, range highs | S2 | 1.3975 | * | recent range lows | |
| R2 | 1.4125 | ** | 76.4% ret of Jun-Aug fall | S3 | 1.3950 | congestion | ||
| R1 | 1.4100 | minor congestion | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
16:25 BST - Cautious trade has given way to anticipated gains, with prices approaching strong resistance at the 1.4125 Fibonacci retracement and 1.4130 in both USD- and CAD-driven trade. Rising intraday studies are becoming overbought, suggesting potential for consolidation beneath here, before improving daily and weekly readings prompt a break. A close above here will further improve sentiment and extend late-August gains towards congestion around 1.4200.
Meanwhile, support remains at 1.4000 and extends to the 1.3975 recent range lows. A close beneath here, not seen, will add weight to sentiment and prompt a deeper retracement initially to congestion around 1.3950.