Chart USD/CAD Update: Room for a bounce
Little change, as prices extend cautious trade within the 1.4000 - 1.4050 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | ** | congestion | S1 | 1.4000 | ** | congestion | |
| R3 | 1.4135 | * | break level | S2 | 13975 | * | 17-21 Sep range lows | |
| R2 | 1.4100 | minor congestion | S3 | 1.3950 | ** | 61.8% ret of Aug-Oct rally | ||
| R1 | 1.4050 | break level | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
16:25 GMT - Little change, as prices extend cautious trade within the 1.4000 - 1.4050 range. Intraday studies are rising and oversold daily stochastics are turning higher, suggesting room for a break above resistance at 1.4050. Focus will then turn to 1.4100 in USD-dominant trade. However, the bearish daily Tension Indicator and deteriorating weekly charts should limit any tests in renewed selling interest/consolidation.
Following cautious/corrective trade, fresh losses are looked for. Support remains at congestion around 1.4000. But a close below the 1.3975 range lows from 17-21 September will add weight to sentiment and extend October losses initially towards the 1.3950 Fibonacci retracement. Beneath here is congestion around 1.3900.