Canadian Dollar Attempts to Gain Additional Momentum 22/7/2025

The Canadian dollar pulled back in the previous session after several days of gains, with the pair reaching a recent high of 1.3734 before entering a corrective phase.

Technical Outlook – 4-Hour Timeframe:

Intraday technical activity shows a break of an ascending trendline, which triggered some short-term bearish movement. The simple moving averages are now pressing down on the price, acting as dynamic resistance. However, the Relative Strength Index (RSI) has entered oversold territory and is beginning to send positive reversal signals, suggesting a potential temporary rebound.

Probable Scenario – Limited Bullish Recovery:

As long as the price holds above 1.3670, there is room for a short-term recovery, with potential upside targets at:

• 1.3700
• 1.3730

Alternative Scenario – Deeper Correction:

A confirmed break below the 1.3670 support level would likely trigger a further pullback toward:

• 1.3640, followed by
• 1.3610 as the next support

Market Catalyst:

Markets are bracing for a potential spike in volatility today as Federal Reserve Chairman Jerome Powell is scheduled to speak. His comments may influence sentiment around the U.S. dollar and interest rate expectations.

Caution:

The risk level remains elevated due to ongoing geopolitical tensions and trade uncertainties. All scenarios are possible, and disciplined risk management is essential.

Risk Disclaimer: Amid global economic uncertainties and trade tensions, risk levels remain high. Traders should proceed with caution and be prepared for a range of market scenarios.

S1: 1.3670	R1: 1.3730
S2: 1.3640	R2: 1.3760
S3: 1.3600	R3: 1.3785