Chart USD/CAD Update: Extending gains in USD- and CAD-driven trade
No change to the bullish tone, as prices extend gains in USD- and CAD-driven trade to congestion resistance at 1.4250
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4400 | ** | congestion | S1 | 1.4200 | ** | congestion | |
| R3 | 1.4350 | * | congestion | S2 | 1.4135 | intraday highs | ||
| R2 | 1.4290/00 | ** | 61.8% ret; 9-14 Oct YTD high | S3 | 1.4100 | minor congestion | ||
| R1 | 1.4250 | * | congestion | S4 | 1.4050 | break level |
Asterisk denotes strength of level
16:30 GMT - No change to the bullish tone, as prices extend gains in USD- and CAD-driven trade to congestion resistance at 1.4250. Rising intraday studies highlight room for a test above here. But flat overbought daily stochastics should limit initial scope in consolidation beneath critical resistance at the 1.4290 Fibonacci retracement and the 1.4300 current year high of 14 October, before the positive daily Tension Indicator and improving weekly charts prompt a break. A close above here will further improve sentiment and extend January gains towards historic congestion around 1.4350.
Meanwhile, support is raised to congestion around 1.4200. A close beneath here, if seen, will help to stabilise price action and prompt fresh consolidation above support within the 1.4100 - 1.4135 range.