Published: 2024-04-26T15:17:30.000Z
Chart USD/CAD Update: Choppy trade under pressure
Senior Technical Strategist
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Cautious trade has given way to a fresh drift down to 1.3635
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.3855 | * | 10 Nov (w) high | S1 | 1.3635 | 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 |
16:15 BST - Cautious trade has given way to a fresh drift down to 1.3635, where a tick higher in intraday charts and a tick higher in oversold daily stochastics are prompting a bounce. Focus is turning to congestion resistance at 1.3700, however, the negative daily Tension Indicator and unwinding overbought weekly stochastics are expected to limit any break in fresh consolidation beneath 1.3800. In the coming sessions, risk is for still deeper losses, with a break below 1.3635 targeting strong support at the 1.3590 Fibonacci retracement and 1.3600. Extension of April losses towards 1.3550 cannot be ruled out.