Canadian Stable Below Support

The Canadian dollar failed to maintain trading above the strong support level published in the previous report at 1.2580; we made it clear that breaking the mentioned level extends the pair’s losses and puts the price under negative pressure to touch the first descending target of 1.2550, recording the lowest 1.2549.

Technically, trading stability below 1.2580, and with the continuation of the negative pressure coming from the 50-day moving average, which meets around the 1.2610 level and adds more strength to it, the bearish tendency is likely, towards the second bearish target of 1.2520 & 1.2490. However, Rising above 1.2610 will postpone the chances of a decline, and we may witness a bullish bias whose initial target is to retest 1.2660, 61.80% correction.

Note High volatility is expected on NFP.

S1: 1.2520	R1: 1.2610
S2: 1.2490	R2: 1.2660
S3: 1.2430	R3: 1.2710