Chart USD/CAD Update: Cautious trade
Little change, as prices extend consolidation beneath congestion resistance at 1.3800
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3950 | * | break level | S1 | 1.3720~ | ** | Aug-Sep lows | |
| R3 | 1.3900 | ** | break level | S2 | 1.3680 | ** | 76.4% ret of Jun-Nov rally | |
| R2 | 1.3850 | congestion | S3 | 1.3600 | * | congestion | ||
| R1 | 1.3800 | ** | congestion | S4 | 1.3539 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:40 GMT - Little change, as prices extend consolidation beneath congestion resistance at 1.3800. Intraday studies are under pressure, highlighting room for drift lower. But mixed daily readings are expected to limit initial scope in further consolidation above support at the 1.3720~ lows from August-September. Broader weekly charts continue to fall, however, pointing to room for a later break beneath here and extension of November losses towards the 1.3680 Fibonacci retracement. Flat oversold daily stochastics could limit any initial tests in consolidation/short-covering. Meanwhile, a close above 1.3800, if seen, should give way to further range trade beneath further congestion around 1.3850.