Chart USD/CAD Update: Lower in CAD-driven trade
Anticipated losses have reached support within the 1.4085 Fibonacci retracement and congestion around 1.4100
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4290/00 | ** | 61.8% ret; 9 Oct YTD high | S1 | 1.4100 | minor congestion | ||
| R3 | 1.4250 | * | break level | S2 | 1.4085 | ** | 38.2% ret of Aug-Oct rally | |
| R2 | 1.4200 | ** | congestion | S3 | 1.4015 | ** | 50% ret of Aug-Oct rally | |
| R1 | 1.4135 | * | break level | S4 | 1.4000 | ** | congestion |
Asterisk denotes strength of level
16:40 BST - Anticipated losses have reached support within the 1.4085 Fibonacci retracement and congestion around 1.4100 in CAD-drive trade, where unwinding oversold intraday studies are prompting short-term consolidation. Daily readings continue to point lower and overbought weekly stochastics are unwinding, highlighting room for further losses in the coming sessions. A close beneath here will add weight to sentiment and extend early-October losses towards the 1.4015 retracement. Just lower is congestion around 1.4000. But already oversold daily stochastics could limit any initial tests of this range in short-covering/consolidation.
Meanwhile, resistance is lowered to the 1.4135 break level. A close above here would help to stabilise price action and prompt fresh consolidation beneath congestion around 1.4200.