Chart USD/CAD Update: Consolidating - studies under pressure
Sharp losses have reached support at 1.4000, where rising intraday studies are prompting consolidation beneath resistance at 1.4050
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | ** | congestion | S1 | 1.4000 | ** | break level | |
| R3 | 1.4150 | * | congestion base | S2 | 1.3980 | ** | 38.2% ret of May-Jun rally | |
| R2 | 1.4100 | * | congestion | S3 | 1.3930 | intraday lows | ||
| R1 | 1.4050 | break level | S4 | 1.3900 | ** | congestion, 50% ret |
Asterisk denotes strength of level
16:55 BST - Sharp losses have reached support at 1.4000, where rising intraday studies are prompting consolidation beneath resistance at 1.4050. Daily readings continue to track lower and broader weekly charts are falling, highlighting room for further losses in the coming sessions. A later break below 1.4000 will open up the 1.3980 Fibonacci retracement, with a further close beneath here adding weight to sentiment and extending late-June losses towards 1.3900. Meanwhile, a close above 1.4050 would help to stabilise price action and prompt consolidation beneath congestion around 1.4100.