Chart USD/CAD Update: Prices remain under pressure
Cautious trade has given way to fresh selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3950 | * | break level | S1 | 1.3720~ | ** | Aug-Sep lows | |
| R3 | 1.3900 | ** | break level | S2 | 1.3680 | ** | 76.4% ret of Jun-Nov rally | |
| R2 | 1.3850 | congestion | S3 | 1.3600 | * | congestion | ||
| R1 | 1.3800 | ** | congestion | S4 | 1.3539 | ** | 16 Jun YTD low |
Asterisk denotes strength of level
16:35 GMT - Cautious trade has given way to fresh selling interest, as intraday studies turn down, with prices currently consolidating above the 1.3720~ lows from August-September. Daily readings are mixed/negative and broader weekly charts are bearish, highlighting room for further losses in the coming sessions. A close beneath here will add weight to already bearish price, action and extend November losses towards the 1.3680 Fibonacci retracement. Flat oversold daily stochastics could limit any initial tests in consolidation/short-covering. Meanwhile, resistance remains at congestion around 1.3800. A close above here, if seen, would help to stabilise price action and give way to consolidation beneath further congestion around 1.3850.