Chart USD/CAD Update: Under pressure in USD- and CAD-driven trade
Cautious trade beneath resistance at 1.4050 has given way to a fresh test lower in both USD- and CAD-driven trade
| 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 - Cautious trade beneath resistance at 1.4050 has given way to a fresh test lower in both USD- and CAD-driven trade, with prices once again pressuring support within the 1.3975 - 1.4000 range. Intraday studies have turned down and daily readings are coming under fresh pressure, highlighting a deterioration in sentiment and room for fresh losses in the coming sessions. A break below 1.3975 will add weight to sentiment and extend October losses initially towards the 1.3950 Fibonacci retracement. Bearish weekly charts point to room for a deeper retracement towards congestion around 1.3900.
Meanwhile, resistance remains at 1.4050. An unexpected close above here would help to stabilise price action and prompt consolidation beneath congestion around 1.4100.