Chart USD/CAD Update: Back at highs
The anticipated test of congestion support at 1.4200 has given way to a bounce in USD- and CAD-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.4400 | * | congestion | S1 | 1.4200 | ** | congestion | |
| R3 | 1.4350 | * | congestion | S2 | 1.4165 | 23.6% ret of Aug-Oct rally | ||
| R2 | 1.4300 | ** | 9 Oct YTD high | S3 | 1.4100 | minor congestion | ||
| R1 | 1.4290 | ** | 61.8% ret of 2025-2026 fall | S4 | 1.4085 | ** | 38.2% ret of Aug-Oct rally |
Asterisk denotes strength of level
16:55 BST - The anticipated test of congestion support at 1.4200 has given way to a bounce in USD- and CAD-driven trade, with prices once again pressuring strong resistance at the 1.4290 Fibonacci retracement and the 1.4300 current year high of 9 October. Daily studies are mixed, suggesting room for further consolidation in the coming sessions. However, broader weekly charts are rising, pointing to a later break and continuation of broad January gains. A close above 1.4290/00 will improve sentiment and open up a test of congestion around 1.4350.
Meanwhile, a break below 1.4200 will target the 1.4165 Fibonacci retracement. Further slippage will turn price action negative and confirm a short-term distribution top in place beneath 1.4290/00.