Chart USD/CAD Update: Sharp pullback in USD- and CAD-driven trade
The anticipated test above congestion resistance at 1.3900 has been pushed back sharply from just beneath 1.3950 in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | congestion | S1 | 1.3850 | congestion | |||
| R3 | 1.4000 | ** | break level | S2 | 1.3800 | ** | congestion | |
| R2 | 1.3950 | congestion | S3 | 1.3730~ | ** | 21 Aug (m) low | ||
| R1 | 1.3900 | * | congestion | S4 | 1.3715 | ** | 76.4% ret of May-Jun rally |
Asterisk denotes strength of level
16:15 BST - The anticipated test above congestion resistance at 1.3900 has been pushed back sharply from just beneath 1.3950 in both USD- and CAD-driven trade, with prices currently pressuring congestion support at 1.3850. Intraday studies have turned down and overbought daily stochastics are also turning down, highlighting room for further losses in the coming sessions. A close beneath here will add weight to sentiment and open up 1.3800. However, a further close below the 1.3730~ monthly low of 21 August would confirm continuation of late-June losses and open up the 1.3715 Fibonacci retracement.
Meanwhile, a close above 1.3900 would help to stabilise price action and prompt consolidation beneath 1.3950.