Chart USD/CAD Update: Lower in CAD-driven trade
Cautious trade above 1.3800 has given way to anticipated selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3950 | congestion | S1 | 1.3730~ | ** | 21 Aug (m) low | ||
| R3 | 1.3900 | * | congestion | S2 | 1.3715 | ** | 76.4% ret of May-Jun rally | |
| R2 | 1.3850 | congestion | S3 | 1.3700 | ** | congestion | ||
| R1 | 1.3800 | ** | congestion | S4 | 1.3665 | ** | 76.4% ret of Jan-Jun rally |
Asterisk denotes strength of level
16:30 BST - Cautious trade above 1.3800 has given way to anticipated selling interest, with prices reaching 1.3760 in CAD-dominant trade before bouncing back to 1.3780. Intraday studies are bearish and daily readings are mixed/negative, highlighting room for a test of 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 the 1.3665 retracement then attracts.
Meanwhile, resistance is lowered to congestion around 1.3800. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3850.