Published: 2024-12-17T16:49:30.000Z
Chart USD/CAD Update: Fresh year highs in CAD-driven trade
Senior Technical Strategist
1
Cautious trade has given way to a sharp CAD-driven break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4250 | break level | ||
| R3 | 1.4560 | * | mid-Mar 2020 (w) high | S2 | 1.4200 | congestion | ||
| R2 | 1.4500 | ** | congestion | S3 | 1.4100 | * | break level | |
| R1 | 1.4350 | * | late-Mar 2020 (w) high | S4 | 1.4000 | * | congestion |
Asterisk denotes strength of level
16:30 GMT - Cautious trade has given way to a sharp CAD-driven break higher, with prices extending May 2021 gains to fresh 2024 year highs. Immediate focus is on the 1.4650 weekly high of late-March 2020, with rising daily readings and improving weekly charts highlighting room for continuation towards 1.4500. However, daily stochastics are flat in overbought areas, suggesting any immediate tests of here could give way to profit-taking/consolidation. Meanwhile, support is down to congestion around 1.4200. A close beneath here, if seen, would add weight to sentiment and prompt a pullback, initially towards 1.4100.