Cad awaits confirmation of support breakout 14/2/2023

The Canadian dollar failed to settle for a long time above the strong resistance level at 1.3380, which formed negative pressure, forcing the pair to trade negatively again, settling around its lowest level at around 1.3330.

Technically, and with a closer look at the 4-hour chart, the simple moving averages started to pressure the price from above. This comes in conjunction with the stability of the momentum indicator for 14 days below the midline 50.

Despite the technical factors that support the possibility of a drop, we prefer to witness a clear and strong break of the strong support floor 1.3020 to open the door directly to a visit 1.3290 and 1.3255, respectively.

As a reminder, the price’s consolidation once again above 1.3380 will immediately stop the suggested bearish scenario, and we are witnessing a bullish tendency, with targets starting at 1.3400 and 1.3440.

Note: Markets are awaiting high-impact data issued by the US economy, “US inflation data/consumer price index”, and we may witness high price fluctuations at the release.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

S1: 1.3320	R1: 1.3370
S2: 1.3290	R2: 1.3400
S3: 1.3255	R3: 1.3440