CAD may see further declines ahead of the BoC decision 26/10/2022

The Canadian dollar is trading with noticeable negativity after it failed to maintain positive stability above the 1.3655 support level, to witness the current movements of the pair stabilizing around its lowest level during the early trading of the current session, around 1.3595.

Technically, we tend in our trading to the negativity, relying on trading below the previously broken support, which is now turned into a resistance level at 1.3655, which is calculated by the negative pressure of the simple moving averages that are putting pressure on the price.

Therefore, the bearish bias is the most likely today, targeting 1.3545 first target, knowing that the decline below the mentioned level increases and accelerates the strength of the daily bearish trend, opening the door directly to visit 1.3495 as long as the price is stable intraday below 1.3655.

Note: Bank of Canada monetary policy report and statement are due today, and they have an essential impact on prices, and we may witness high 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: 1.3545	R1: 1.3700
S2: 1.3495	R2: 1.3800
S3: 1.3390	R3: 1.3850