Chart USD/CAD Update: Short-term reactions before further losses unfold
Anticipated selling interest has reached 1.3845
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4050 | break level | S1 | 1.3820 | ** | 61.8% ret of May-Jun rally | ||
| R3 | 1.4000 | ** | break level | S2 | 1.3800 | ** | congestion | |
| R2 | 1.3950 | congestion | S3 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R1 | 1.3900 | * | congestion | S4 | 1.3700 | * | break level |
Asterisk denotes strength of level
16:40 BST - Anticipated selling interest has reached 1.3845, where unwinding oversold intraday studies are prompting short-term reactions. Immediate focus is turning back to congestion resistance at 1.3900. But negative daily and weekly charts should limit any break in renewed selling interest beneath further congestion around 1.3950.
Following cautious/corrective trade, fresh losses are looked for. A later break below 1.3845 will extend late-June losses towards support at the 1.3820 Fibonacci retracement. Just lower is congestion around 1.3800. Already oversold daily stochastics could limit any initial tests of this range in short-covering/consolidation, before prices continue still lower.