Chart USD/CAD Update: Cautious trade - background studies continue to fall
Cautious trade has given way to a drift higher to congestion resistance at 1.3950
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4100 | * | congestion | S1 | 1.3900 | ** | congestion, 50% ret | |
| R3 | 1.4050 | break level | S2 | 1.3820 | ** | 61.8% ret of May-Jun rally | ||
| R2 | 1.4000 | ** | break level | S3 | 1.3800 | ** | congestion | |
| R1 | 1.3950 | congestion | S4 | 1.3715 | ** | 76.4% ret of May-Jun rally |
Asterisk denotes strength of level
16:30 BST - Cautious trade has given way to a drift higher to congestion resistance at 1.3950, where unwinding overbought intraday studies are prompting fresh consolidation. Oversold daily stochastics are flat, highlighting room for fresh cautious trade in the coming sessions, before the bearish daily Tension Indicator and negative weekly charts give way to renewed selling interest.
Support remains at 1.3900. A later close beneath here will add weight to price action and extend late-June losses towards 1.3800/20.
Meanwhile, a close above 1.3950, if seen, will help to stabilise price action and prompt consolidation beneath 1.4000.