Chart USD/CAD Update: Balanced beneath fresh year high
The anticipated test above strong resistance within the 1.3985 - 1.4000 range has posted a fresh year high around 1.4023
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | break level | S1 | 1.3930 | intraday lows | |||
| R3 | 1.4023~ | * | 11 Jun YTD high | S2 | 1.3900 | ** | congestion | |
| R2 | 1.4000 | ** | break level | S3 | 1.3850 | congestion | ||
| R1 | 1.3985 | ** | 76.4% ret of Nov-May fall | S4 | 1.3800 | * | congestion |
Asterisk denotes strength of level
16:30 BST - The anticipated test above strong resistance within the 1.3985 - 1.4000 range has posted a fresh year high around 1.4023, before falling back into consolidation beneath the 1.3985 Fibonacci retracement. Daily stochastics are flat in overbought areas, suggesting room for further cautious trade. But the rising daily Tension Indicator and positive weekly charts point to further gains in the coming sessions. A close above 1.4000 will help to improve sentiment and extend late-January gains towards resistance at 1.4050. Meanwhile, support remains at the 1.3930 intraday lows and extends to congestion around 1.3900. A close beneath here, if seen, will add weight to sentiment and open up a test of 1.3850, where fresh consolidation is expected to appear.