Chart USD/CAD Update: Extending pressure on 1.3800
The anticipated retest of congestion resistance at 1.3800 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3890/00 | ** | 50% ret; break level | S1 | 1.3700 | * | congestion | |
| R3 | 1.3850 | congestion | S2 | 1.3640 | * | 26 Dec (w) low | ||
| R2 | 1.3830 | * | 38.2% ret of Nov-Dec fall | S3 | 1.3600 | * | congestion | |
| R1 | 1.3800 | ** | congestion | S4 | 1.3539 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:40 GMT - The anticipated retest of congestion resistance at 1.3800 is giving way to consolidation, as intraday studies turn mixed, with prices currently balanced around 1.3780. Daily readings are rising, highlighting room for a break towards the 1.3830 Fibonacci retracement. But already overbought daily stochastics and mixed weekly charts are expected to limit any initial tests in consolidation. A close above here, however, would extend gains towards 1.3890/00, where more significant selling interest is expected to appear. Meanwhile, support remains at congestion around 1.3700 and should underpin any immediate setbacks.