Chart USD/CAD Update: Pressuring recent highs
Cautious trade is giving way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4400 | break level | ||
| R3 | 1.4560 | * | mid-Mar 2020 (w) high | S2 | 1.4335 | 20 Dec low | ||
| R2 | 1.4500 | ** | congestion | S3 | 1.4250 | break level | ||
| R1 | 1.4465 | ** | 19 Dec 2024 (y) high | S4 | 1.4200 | congestion |
Asterisk denotes strength of level
17:15 GMT - Cautious trade is giving way to anticipated gains, as intraday studies improve, with prices tracking higher towards critical resistance at the 1.4465 year high of 19 December 2024. A break will improve price action and open up congestion around 1.4500. However, mixed daily readings and flat overbought weekly stochastics are expected to limit any initial tests in consolidation, before positive longer-term charts prompt a break and open up the 1.4560 weekly high of mid-March 2020. Meanwhile, support is at congestion around 1.4400. But a close below the 1.4335 low of 20 December is needed to add weight to sentiment and give way to a deeper correction, initially towards 1.4250.