Chart USD/CAD Update: Consolidating test of 1.3800 - studies under pressure
The test of congestion support at 1.3800 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4100 | * | break level | S1 | 1.3800 | ** | congestion | |
| R3 | 1.4000 | * | break level | S2 | 1.3770 | ** | 61.8% ret of Jun-Nov rally | |
| R2 | 1.3950 | * | break level | S3 | 1.3720~ | ** | Aug-Sep lows | |
| R1 | 1.3900 | ** | break level | S4 | 1.3680 | ** | 76.4% ret of Jun-Nov rally |
Asterisk denotes strength of level
16:45 GMT - The test of congestion support at 1.3800 is giving way to consolidation, as intraday studies turn mixed and oversold daily stochastics flatten, with prices currently trading around 1.3835. The daily Tension Indicator continues to track lower and broader weekly charts are bearish, highlighting room for further losses in the coming sessions. A break below 1.3800 will open up the 1.3770 Fibonacci retracement, where fresh consolidation could develop, before November losses extend still further. Meanwhile, a close above resistance at the 1.3900 break level will help to stabilise price action and prompt consolidation beneath 1.3950.