CAD tests resistance for the third consecutive session 5/8/2022

The loonie’s movement has changed little and is still hovering below the pivotal resistance level 1.2880 that it has been unable to breach.

Technically, we tend to the negativity, relying on the support of the 50-day simple moving average for the bearish bias, which is exerting negative pressure on the price from above. This comes in conjunction with the appearance of negativity signs on the stochastic indicator.

Therefore, we maintain our negative outlook and await confirmation of breaking the 1.2830 support, which facilitates the task to visit 1.2780, the first target, and then 1.2730, the next official station.

Rising again above 1.2890 and stability above it will cancel the suggested bearish scenario, and we are witnessing a temporary recovery for the pair, targeting 1.2925 and 1.2955 initially.

Note: Today, we are waiting for high-impact data from the US economy, jobs data, unemployment rate and average wages,” and we may witness high price fluctuations.

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: 1.2835	R1: 1.2885
S2: 1.2795	R2: 1.2925
S3: 1.2730	R3: 1.2975