Canadian Dollar Attacks The Resistance

The pair rallied significantly yesterday, after several successive sessions of moving within a weak sideways. To be reminded, we indicated during the previous analysis that the confirmation of the breach of the resistance level of 1.3175 is capable of releasing the pair from the sideways range and pushing the price to the upside to target 1.3260, so that the pair managed to post a high at 1.3260.

Technically speaking, with a closer look at the chart, we find RSI started moving above the middle line, and on the other hand, negative features began to appear on the stochastic indicator. Despite the conflicting technical signals, we tend to be negative in our intraday trading, targeting a re-test of the previously breached resistance, which has now turned to the support level of 1.3165, before rising again.

Warning: the pair breaching the resistance level of 1.3260 is capable of negate the aforementioned re-test scenario, and the pair will recover, heading directly towards 1.3280, and then 1.3330, respectively.

S1: 1.3160	R1: 1.3280
S2: 1.3090	R2: 1.3330
S3: 1.3045	R3: 1.3390