Chart USD/CAD Update: Higher in both USD- and CAD-driven trade
Consolidation around 1.3840 has given way to a fresh test higher in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | congestion | S1 | 1.3800 | ** | congestion | ||
| R3 | 1.4000 | ** | break level | S2 | 1.3730~ | * | 21 Aug (w) low | |
| R2 | 1.3950 | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R1 | 1.3900 | * | congestion | S4 | 1.3700 | ** | congestion |
Asterisk denotes strength of level
16:35 BST - Consolidation around 1.3840 has given way to a fresh test higher in both USD- and CAD-driven trade, with immediate focus back on congestion resistance at 1.3900. Daily stochastics continue to rise and the daily Tension Indicator is also positive, highlighting room for a test above here. But negative weekly charts should limit any break in renewed selling interest beneath further congestion around 1.3950.
Meanwhile, support remains at congestion around 1.3800. A close beneath here, not yet seen, will turn sentiment neutral. But a further close below the 1.3730~ weekly low of 21 August will add weight to sentiment and extend late-June losses towards strong support within the 1.3700/15 range.