CAD May see a limited slope 13/5/2022

The Canadian dollar jumped, continuing to the upside within the expected bullish context, surpassing the first target that is required to be touched during the previous analysis at 1.3060, recording the highest at 1.3076.

Technically, and with careful consideration of the 4-hour chart, we find the resistance level of 1.3060 that was able to limit the bullish bias, as we find the stochastic indicator started losing the bullish momentum gradually, and therefore we may witness a limited bearish slope targeting 1.2950, and it may extend towards 1.2910 before The start of the rise again, knowing that the daily trend is still bullish and the next official targets are around 1.3110 and 1.3150 as soon as we witness the breach of 1.3060.

A decline below 1.2910 will immediately halt the suggested bullish scenario and lead the pair to enter a bearish correction, with its initial target of 1.2860.

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: 1.2960	R1: 1.3060
S2: 1.2910	R2: 1.3115
S3: 1.2860	R3: 1.3160