CAD based on the support line 10/8/2022

The Canadian dollar is trying to obtain some strength, cancelling yesterday’s decline view. We relied on trading stability during the European session, below 1.2880, to record its highest level at 1.2905.

Technically, we find the pair succeeded in relying on the bullish trend support line represented by the price of 1.2860 and the positive motive of the 50-day simple moving average.

We may witness a bullish bias during the session, with targets around 1.2920 and 1.2950, respectively, unless we see any trading below 1.2850.

The return of stability below 1.2850 will stop the bullish bias and put the pair under negative pressure targeting 1.2810 and 1.2770 initially.

Note: CPI figures are due during the US session, which has a high impact; and may lead to high price volatility.

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: 1.2810	R1: 1.2920
S2: 1.2770	R2: 1.2990
S3: 1.2705	R3: 1.3030