Chart USD/CAD Update: Lower in both USD- and CAD-driven trade
Cautious trade has given way to a pullback in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3755 | ** | 61.8% ret of Jan-Feb fall | S1 | 1.3600 | * | congestion | |
| R3 | 1.3725 | * | 6 Feb (m) high | S2 | 1.3550 | congestion | ||
| R2 | 1.3700 | * | congestion | S3 | 1.3500 | ** | congestion | |
| R1 | 1.3650 | congestion | S4 | 1.3480~ | ** | 30 Jan YTD low |
Asterisk denotes strength of level
16:45 GMT - Cautious trade has given way to a pullback in both USD- and CAD-driven trade, with prices currently pressuring congestion support at 1.3600. Intraday studies are bearish and daily readings are also under pressure, highlighting room for continuation beneath here towards further congestion around 1.3550. However, mixed/positive weekly charts should limit any immediate break in short-covering/consolidation above stronger support at the 1.3480~ current year low of 30 January and congestion around 1.3500. Meanwhile, resistance is lowered to congestion around 1.3650 and extends to 1.3700. This range should cap any immediate tests higher.