Chart USD/CAD Update: Further consolidation - background studies under pressure
Little change, as prices extend cautious trade above support at 1.4175
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4500 | ** | congestion | S1 | 1.4175 | break level | ||
| R3 | 1.4400 | break level | S2 | 1.4100/10 | ** | congestion; 50% ret | ||
| R2 | 1.4300 | * | congestion lows | S3 | 1.4000 | ** | break level | |
| R1 | 1.4245 | 19 Feb high | S4 | 1.3950 | ** | 61.8% ret of Sep-Feb rally |
Asterisk denotes strength of level
16:25 GMT - Little change, as prices extend cautious trade above support at 1.4175. Oversold daily stochastics are edging higher and the bearish daily Tension Indicator is flattening, suggesting a cautious tone and room for further consolidation. However, broader weekly charts remain negative, pointing to room for a later break. A close below 1.4175 will add weight to sentiment and extend February losses towards strong support at 1.4100/10. Already oversold weekly stochastics could prompt short-covering/consolidation towards here. Meanwhile, resistance is at the 1.4245 high of 19 February. A close above here, if seen, will open up 1.4300, where fresh selling interest is expected to appear.