Chart USD/CAD Update: Lower from the fresh 2024 year high
The test above the 1.3947 monthly high of 5 August has posted a fresh 2024 year high at 1.3958
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4040 | ** | 76.4% ret of 2020-2021 fall | S1 | 1.3900 | break level | ||
| R3 | 1.4000 | figure | S2 | 1.3850 | break level | |||
| R2 | 1.3978 | ** | October 2022 (y) high | S3 | 1.3800 | ** | congestion | |
| R1 | 1.3947/58 | ** | 5 Aug (m) high; 1 Nov YTD high | S4 | 1.3745 | * | 17 Oct (w) low |
Asterisk denotes strength of level
16:40 GMT - The test above the 1.3947 monthly high of 5 August has posted a fresh 2024 year high at 1.3958, where fresh selling interest has prompted a sharp pullback to support at 1.3900. Overbought daily stochastics are unwinding and the daily Tension Indicator is also coming under pressure, highlighting a deterioration in sentiment and room for fresh losses in the coming sessions. A close below 1.3900 will add weight to price action and open up a test of support at the 1.3850 break level. Still lower is 1.3800. Meanwhile, a break above 1.3947/58 will target critical multi-month resistance at the 1.3978 year high of October 2022. Still higher is the 1.4040 Fibonacci retracement, but already overbought weekly stochastics could prompt profit-taking pressure within this broad area.