CAD waiting for a signal 15/12/2022

Negative trading dominated the movements of the Canadian dollar, heading to visit the first official target to be achieved yesterday, at 1.3520, recording its lowest level at 1.3518.

Technically, we notice the continuation of the negative pressure coming from the simple moving averages that continue to pressure the price from above, and on the other hand, we find the stochastic indicator trying to provide positive crossover signals.

With conflicting technical signals, we prefer to monitor the price behavior of the pair to be facing one of the following scenarios:

To resume the drop, we need to witness a clear breach of the support floor at 1.3510, which may facilitate the task of visiting the second target of the previous report at 1.3465, and the losses may extend later towards 1.3420.

The bullish trend depends on the pair’s ability to consolidate above the resistance of the psychological barrier 1.3610/1.3600, which is a motivating factor that enhances chances of touching 1.3660 and 1.3690, respectively.

Note: We are waiting for high-impact economic data today, and we may witness obvious fluctuations at the time of the press release:

Interest rate decision from the Bank of England

Summary of monetary policy from the Bank of England

Monetary policy vote on interest rates from the Bank of England

The interest rate decision of the European Central Bank

European Central Bank monetary policy statement

ECB press conference

US retail sales

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: 1.3515	R1: 1.3610
S2: 1.3465	R2: 1.3660
S3: 1.3420	R3: 1.3705