Chart USD/CAD Update: Cautious trade - studies under pressure
Little change, as prices extend cautious trade within the 1.3800 - 1.3850 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3800 | ** | congestion | |
| R3 | 1.3950 | congestion | S2 | 1.3730~ | ** | 21 Aug (m) low | ||
| R2 | 1.3900 | * | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | |
| R1 | 1.3850 | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:25 BST - Little change, as prices extend cautious trade within the 1.3800 - 1.3850 range. Daily readings are turning mixed/negative, highlighting room for a test below congestion support at 1.3800. Focus will then turn to critical support at the 1.3715 Fibonacci retracement and the 1.3730~ monthly low of 21 August. However, flat oversold weekly stochastics could limit any initial tests in fresh consolidation, before the bearish weekly Tension Indicator and negative longer-term charts prompt further losses. A close beneath here will confirm continuation of late-June losses, as prices then target levels below 1.3700.
Meanwhile, resistance remains at congestion around 1.3850. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3900.