Chart USD/CAD Update: Heightened volatility - studies under pressure
Cautious trade has given way to a sharp fall from the 1.4485 current day high
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4667 | ** | March 2020 (y) high | S1 | 1.4335 | * | 20 Dec low | |
| R3 | 1.4500 | ** | congestion | S2 | 1.4280 | * | 6 Jan (w) low | |
| R2 | 1.4485 | intraday high | S3 | 1.4250 | break level | |||
| R1 | 1.4400 | break level | S4 | 1.4200 | break level |
Asterisk denotes strength of level
16:05 GMT - Cautious trade has given way to a sharp fall from the 1.4485 current day high, with prices reaching 1.4260 before bouncing back to the 1.4335 low of 20 December. Intraday studies have turned down and mixed daily readings are also coming under pressure, highlighting potential for fresh losses in the coming sessions. A close below 1.4335 will add weight to sentiment and open up the 1.4280 weekly low of 6 January. A further close below 1.4250 will turn sentiment negative and confirm a near-term top in place just below congestion around 1.4500. Meanwhile, a close above 1.4400 would help to stabilise price action. But a further close above 1.4500 would turn price action positive and confirm continuation of broad May 2021 gains.