Chart USD/CAD Update: Leaning lower
Cautious trade has drifted lower
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.3900 | ** | 1 Nov 2023 (y) high | S1 | 1.3700 | ** | congestion | |
R3 | 1.3855 | * | 10 Nov (w) high | S2 | 1.3650 | congestion | ||
R2 | 1.3845 | * | 16 Apr YTD high | S3 | 1.3600 | ** | break level | |
R1 | 1.3800 | ** | congestion | S4 | 1.3550 | * | break level |
14:50 BST - Cautious trade has drifted lower, with prices currently meeting buying interest above 1.3700 as oversold intraday studies unwind. Daily stochastics continue to track lower, however, and the daily Tension Indicator is also under pressure, highlighting room for a later test beneath here. A close below 1.3700 will add fresh weight to sentiment and prompt a deeper pullback towards 1.3600. However, rising weekly charts are expected to prompt fresh buying interest towards here. Meanwhile, a close above congestion resistance at 1.3800, if seen, will improve sentiment. But a further close above the 1.3845 current year high of 16 April is needed to turn price action outright positive and extend late-December gains towards the 1.3900 year high of 1 November 2023.