Chart USD/CAD Update: Higher in USD- and CAD-driven trade
Choppy price action has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4290/00 | ** | 61.8% ret; 9-14 Oct YTD high | S1 | 1.4135 | intraday highs | ||
| R3 | 1.4250 | * | congestion | S2 | 1.4100 | minor congestion | ||
| R2 | 1.4215 | ** | 76.4% ret of Oct-Nov fall | S3 | 1.4050 | break level | ||
| R1 | 1.4200 | ** | congestion | S4 | 1.4000 | ** | congestion |
Asterisk denotes strength of level
16:40 GMT - Choppy price action has given way to anticipated gains, with prices currently pressuring resistance at congestion around 1.4200 and the 1.4215 Fibonacci retracement in both USD- and CAD-driven trade. Intraday studies have turned positive and daily readings continue to rise, pointing to a positive tone and room for further gains in the coming sessions. A break above here will extend November gains towards congestion around 1.4250. But already overbought daily stochastics and mixed weekly charts should limit any further tests above here in renewed selling interest/consolidation beneath critical resistance at 1.4290/00.
Meanwhile, support is at the 1.4135 intraday highs and extends to congestion around 1.4100. This range should underpin any immediate setbacks.