CAD: Consolidating The Downtrend 22/3/2022

The Canadian dollar failed to retest the resistance of 1.2640 as we expected. Instead, we relied on the positive signs on the momentum indicator, explaining the idea of ​​retesting the general bearish trend, recording the lowest price at 1.2565.

Technically, by looking at the 240-minute chart, we notice that the pair started to pressure the 1.2585 support level accompanied by the continuation of the negative pressure coming from the 50-day moving average.

Accordingly, the pair may reinforce the idea of ​​movement within the bearish direction to visit 1.2560 and 1.2530 respectively, and the bearish targets may extend to visit 1.2480, 50.0% correction, next station, as long as the intraday trades are stable below the 1.2640 resistance.

Note: The risk level is high and we may see random.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.2560	R1: 1.2640
S2: 1.2530	R2: 1.2670
S3: 1.2500	R3: 1.2700