Published: 2024-04-24T15:18:58.000Z
Chart USD/CAD Update: Limited tests higher
Senior Technical Strategist
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Cautious trade is giving way to a bounce
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.3855 | * | 10 Nov (w) high | S1 | 1.3655 | intraday 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 |
16:10 BST - Cautious trade is giving way to a bounce, as intraday studies turn higher, with prices testing levels just above 1.3700. Next resistance is at further congestion around 1.3800, but negative daily readings are expected to limit gains in selling interest beneath here. Meanwhile, support is at the 1.3655 current day low. A later close beneath here will add weight to sentiment and extend losses towards strong support at the 1.3590 Fibonacci retracement and 1.3600. A tick lower in overbought weekly stochastics highlights potential for a further break and continuation of April losses towards 1.3550.