Canadian dollar retests support, looking for additional momentum 24/8/2022

The Canadian dollar was able to retest the support as we explained yesterday, touching the required retest target at 1.2950, recording yesterday’s low of 1.2930.

Technically, the pair was able to build on the 1.2930 support floor accompanied by positive signs coming from the 14-day momentum indicator on the short time frames.

Therefore, the possibility of a return to the rise exists, knowing that confirming the breach of 1.3000 facilitates the task required to visit 1.3050, and gains may extend later towards 1.3120.

The decline below 1.2930 constitutes a negative pressure factor on the pair, and we are witnessing a bearish corrective slope whose target is around 1.2865 before resuming the 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: 1.2930	R1: 1.3050
S2: 1.2865	R2: 1.3120
S3: 1.2795	R3: 1.3175