CAD facing negative pressure 11/4/2022

There were positive attempts by the Canadian dollar to achieve the expected bullish rebound at the end of last week’s trading, recording its highest level around the psychological resistance level of 1.2600.

Technically, the pair’s current movements are witnessing a bearish tendency as a result of the negativity features that started appearing on the stochastic indicator, in addition to the pressure coming from the 1.2565 resistance level represented by the 38.20% Fibonacci correction.

We may witness a bearish tendency in the coming hours, targeting a retest of 1.2520, a first target, taking into account that the decline below the mentioned level extends the pair’s losses, heading towards 1.2480 before attempts to rise again.

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: 1.2520	R1: 1.2600
S2: 1.2480	R2: 1.2640
S3: 1.2440	R3: 1.2665