Canadian Dollar Continues to Achieve Extended Goals Ahead of BoC

Positive trading dominated the movements of the Canadian dollar as we expected, in which we depended on successfully retesting the 1.2410 support level, approaching a few points from the first target of 1.2550, recording a high of 1.2540.

Technically, the bullish trend is still the most likely, relying on the positive motive coming from the 50-day moving average, which meets around the 1.2450 support level and the pair getting a positive signal from the momentum indicator on the short time intervals.

Therefore, we will resume the bullish correction tendency, with the first target of 1.2550/1.2555, and its breach is a catalyst that enhances the chances of rising towards 1.2600, and the gains may extend later towards 1.2650. Trading stability above the 1.2410 support level represented by the 61.80% correction is essential and fundamental for the rise to continue.

Note: Bank of Canada event is due today, followed by a press conference, and may cause high volatility.

S1: 1.2455	R1: 1.2555
S2: 1.2410	R2: 1.2600
S3: 1.2340	R3: 1.2650