Chart USD/CAD Update: Prices remain under pressure
The anticipated break below 1.3700 has met buying interest just above support at 1.3590/00
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.3855 | * | 10 Nov (w) high | S1 | 1.3632 | 26 Apr (w) low | ||
R3 | 1.3845 | * | 16 Apr YTD high | S2 | 1.3590/00 | ** | 38.2% ret of Dec-Apr rally; break level | |
R2 | 1.3800 | ** | congestion | S3 | 1.3550 | * | break level | |
R1 | 1.3700 | ** | congestion | S4 | 1.3500/10 | ** | congestion; 50% ret of Dec-Apr rally |
16:30 BST - The anticipated break below 1.3700 has met buying interest just above support at 1.3590/00, as oversold intraday studies unwind, with prices posting an equally sharp bounce to trade just below 1.3700. Daily readings continue to track lower, however, and overbought weekly stochastics are unwinding, highlighting a bearish tone and room for fresh losses in the coming sessions. A later close below the 1.3632 weekly low of 26 April will add weight to already negative price action and extend mid-April losses back to 1.3590/00. Further losses will open up 1.3550. Meanwhile, a close back above 1.3700 would turn sentiment neutral and prompt fresh consolidation beneath 1.3800.