Chart USD/CAD Update: Further consolidation
Still 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
16:30 GMT - Still little change, as prices extend consolidation beneath congestion resistance at 1.3800. Intraday studies are under pressure, highlighting room for drift lower. But mixed/positive 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.