Chart USD/CAD Update: Higher in CAD-driven trade
Cautious trade has given way to a break higher in CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3850 | congestion | ||
| R3 | 1.3965 | ** | 31 Mar YTD high | S2 | 1.3800 | * | congestion | |
| R2 | 1.3900 | ** | congestion | S3 | 1.3770 | ** | 29 May (w) low | |
| R1 | 1.3870 | ** | 76.4% ret of Mar-May fall | S4 | 1.3750 | congestion |
Asterisk denotes strength of level
16:40 BST - Cautious trade has given way to a break higher in CAD-driven trade, with the break above the 1.3870 Fibonacci retracement opening up congestion around 1.3900. Daily readings are improving and broader weekly charts remain positive, highlighting room for further strength in the coming sessions. But a close above 1.3870 is needed to improve sentiment and extend May gains beyond 1.3900 towards critical resistance at the 1.3965 current year high of 31 March. Meanwhile, support is raised to congestion around 1.3850. A close beneath here, if seen, will help to stabilise sentiment and prompt consolidation above further congestion around 1.3800.