Published: 2025-01-08T16:55:32.000Z
Chart USD/CAD Update: Gains to remain limited
Senior Technical Strategist
2
Cautious trade has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4335 | 20 Dec low | ||
| R3 | 1.4500 | ** | congestion | S2 | 1.4280 | 6 Jan low | ||
| R2 | 1.4465 | ** | 19 Dec 2024 (y) high | S3 | 1.4250 | break level | ||
| R1 | 1.4400 | break level | S4 | 1.4200 | congestion |
Asterisk denotes strength of level
16:40 GMT - Cautious trade has given way to a bounce, with prices currently pressuring resistance at the 1.4400 break level. Rising intraday studies are now overbought and daily readings continue to track lower, highlighting difficulty sustaining any immediate break. Critical resistance at the 1.4465 year high of 19 December 2024 should cap any immediate break. A close above here, however, would turn sentiment positive and confirm continuation of May 2021 gains. Meanwhile, support is at the 1.4335 low of 20 December. A fresh close beneath here would add weight to sentiment and open up a pullback, initially to support at 1.4250.