Chart USD/CAD Update: Corrective bounce in both USD- and CAD-driven trade
Consolidation above the 1.3730~ weekly low of 21 August has given way to a sharp USD- and CAD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | congestion | S1 | 1.3800 | ** | congestion | ||
| R3 | 1.4000 | ** | break level | S2 | 1.3730~ | * | 21 Aug (w) low | |
| R2 | 1.3950 | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R1 | 1.3900 | * | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:50 BST - Consolidation above the 1.3730~ weekly low of 21 August has given way to a sharp USD- and CAD-driven bounce, with the break above 1.3800 helping to improve sentiment. Prices are currently balanced around 1.3850. But a tick higher in oversold daily stochastics and the flattening bearish daily Tension Indicator highlight room for further gains in the coming sessions. Focus is turning to congestion around 1.3900. But negative weekly charts should limit any break in renewed selling interest beneath further congestion around 1.3950.
Meanwhile, a close back below 1.3800 will turn sentiment neutral. But a further close below 1.3730~ will add weight to sentiment and extend late-June losses towards strong support within the 1.3700/15 range.