Chart USD/CAD Update: Short-term reactions before lower
Anticipated losses have reached 1.3755 in both USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4000 | ** | break level | S1 | 1.3755 | intraday low | ||
| R3 | 1.3950 | congestion | S2 | 1.3715 | ** | 76.4% ret of May-Jun rally | ||
| R2 | 1.3900 | * | congestion | S3 | 1.3700 | ** | congestion | |
| R1 | 1.3800 | ** | congestion | S4 | 1.3650 | congestion |
Asterisk denotes strength of level
16:30 BST - Anticipated losses have reached 1.3755 in both USD- and CAD-driven trade, where rising oversold intraday studies are prompting short-term reactions. Daily readings are turning down and broader weekly charts charts continue to fall, highlighting room for still deeper losses in the coming sessions. A break below 1.3755 will add weight to sentiment and extend late-June losses towards support within congestion around 1.3700 and the 1.3715 Fibonacci retracement. However, already oversold daily stochastics could limit any initial tests in short-covering/consolidation.
Meanwhile, resistance is lowered to congestion around 1.3800. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 1.3900.