Chart USD/CAD Update: Extending losses in CAD-dominant trade
Cautious trade around 1.4100 has given way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4250 | * | break level | S1 | 1.4015 | ** | 50% ret of Aug-Oct rally | |
| R3 | 1.4200 | ** | congestion | S2 | 1.4000 | ** | congestion | |
| R2 | 1.4135 | * | break level | S3 | 13975 | * | 17-21 Sep range lows | |
| R1 | 1.4100 | minor congestion | S4 | 1.3950 | ** | 61.8% ret of Aug-Oct rally |
Asterisk denotes strength of level
16:15 BST - Cautious trade around 1.4100 has given way to anticipated losses, with prices extending the fall from the 1.4300 current year high of 9-14 October in CAD-dominant trade to reach 1.4030. Intraday studies continue to point lower and daily readings are also bearish, highlighting room for continuation to strong support within congestion around 1.4000 and the 1.4015 Fibonacci retracement. Deteriorating weekly charts highlight room for still deeper losses, with a further close beneath here initially opening up the 1.3975 range lows from 17-21 September.
Meanwhile, resistance is lowered to congestion around 1.4100. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath 1.4135.