Published: 2024-04-30T15:56:56.000Z
Chart USD/CAD Update: Smart reversal in USD- and CAD-driven trade
Senior Technical Strategist
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Cautious trade has given way to a USD- and CAD-driven reversal higher
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 1.3900 | ** | congestion, November 2023 (m) high | S1 | 1.3700 | ** | congestion | |
R3 | 1.3855 | * | 10 Nov (w) high | S2 | 1.3632 | 26 Apr (w) low | ||
R2 | 1.3845 | * | 16 Apr YTD high | S3 | 1.3590/00 | ** | 38.2% ret of Dec-Apr rally; break level | |
R1 | 1.3800 | ** | congestion | S4 | 1.3550 | * | break level |
16:40 BST - Cautious trade has given way to a USD- and CAD-driven reversal higher, with the break above 1.3700 turning sentiment neutral. Immediate focus is back on congestion resistance at 1.3800, but mixed daily readings and mixed/negative weekly charts are expected to limit any immediate tests in consolidation. A close above the 1.3845 current year high of 16 April is needed to turn price action positive and extend late-December gains towards 1.3900. Meanwhile, support is raised to 1.3700 and should underpin any immediate setbacks.