Chart USD/CAD Update: Consolidating test of 1.3795/00 - studies under pressure
The test of strong support at the 1.3795 Fibonacci retracement and congestion around 1.3800 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3985 | ** | 76.4% ret of Nov-Jan fall | S1 | 1.3795/00 | * | 38.2% ret; congestion | |
| R3 | 1.3965 | * | 31 Mar YTD high | S2 | 1.3745 | ** | 50% ret of March rally | |
| R2 | 1.3900 | * | congestion | S3 | 1.3700 | ** | cong, 61.8% ret | |
| R1 | 1.3850 | * | congestion | S4 | 1.3650 | * | congestion |
Asterisk denotes strength of level
17:00 BST - The test of strong support at the 1.3795 Fibonacci retracement and congestion around 1.3800 is giving way to consolidation, as intraday studies turn higher, with prices currently balanced around 1.3830. Daily readings remain bearish and overbought weekly stochastics are flattening, highlighting room for a later break beneath here and extension of late-March losses towards the 1.3745 retracement. However, the positive weekly Tension Indicator could limit any initial tests in consolidation. Meanwhile, resistance remains at congestion around 1.3850. A close back above here, if seen, would help to stabilise sentiment and prompt consolidation beneath further congestion around 1.3900.