Chart USD/CAD Update: Consolidating bounce from support
The test of support within the 1.3975 range lows from 17-21 September and congestion around 1.4000 has given way to a bounce to resistance at 1.4050
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4200 | ** | congestion | S1 | 1.4000 | ** | congestion | |
| R3 | 1.4135 | * | break level | S2 | 13975 | * | 17-21 Sep range lows | |
| R2 | 1.4100 | minor congestion | S3 | 1.3950 | ** | 61.8% ret of Aug-Oct rally | ||
| R1 | 1.4050 | break level | S4 | 1.3900 | * | congestion |
Asterisk denotes strength of level
17:30 GMT - The test of support within the 1.3975 range lows from 17-21 September and congestion around 1.4000 has given way to a bounce to resistance at 1.4050, before settling into consolidation around 1.4010. Oversold daily stochastics are edging higher, suggesting room for a retest of 1.4050. But the bearish daily Tension Indicator and negative weekly charts should limit any break in renewed selling interest/consolidation towards 1.4100.
Following cautious/corrective trade, fresh losses are looked for. A close below 1.3975 will add weight to sentiment and extend October losses initially towards the 1.3950 Fibonacci retracement. Beneath here is congestion around 1.3900.