CAD: Looking For Momentum

Positive trading dominated the movements of the Canadian dollar during the previous trading session within the bullish context, as we expected, approaching by a few points from the published target of 1.2860, recording its highest level at 1.2850.

Technically, and by looking at the 4-hour chart, we notice that the pair continues to obtain a positive stimulus from the 50-day moving average, in addition to the regularity of work within the ascending price channel.

Therefore, we tend to be positive, but on the condition that we witness a clear and strong breach of the 1.2850 resistance level, which increases the bullish trend’s strength so that the way is directly open towards 1.2900 1.2950, ​​respectively.

To remind that activating the suggested bullish scenario requires daily trading to remain above the 1.2740 support level, and most importantly 1.2720, 50.0% Fibonacci correction. 

Note: the RSI is affected by some negative signals.

S1: 1.2740	R1: 1.2850
S2: 1.2670	R2: 1.2905
S3: 1.2630	R3: 1.2955