CAD retests support 16/2/2023

A bullish tendency dominated the movements of the Canadian dollar yesterday. However, as a reminder, we remained neutral for the moment due to the conflict between the technical signals, explaining that activating buying positions depends on confirming the breach of 1.3380 to target 1.3410 & 1.3460, to suffice for recording its highest level at 1.3440.

Technically, the pair collided with the resistance level of 1.3440, which forced it to trade in negativity, to witness the current movements of the pair stabilizing below 1.3400, as we find the 50-day simple moving average returned to form an obstacle to pressure the price from above.

We may witness a bearish tendency in the coming hours, aiming to retest the pivotal support 1.3320/1.3330 before attempting to resume the rise again, knowing that the return of trading stability again above 1.3400 leads the pair to complete the attempts to rise that started yesterday, with targets starting at 1.3440 and extending to 1.3480.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the monthly producer price index,” and we may witness high volatility at the time of 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: 1.3330	R1: 1.3440
S2: 1.3270	R2: 1.3490
S3: 1.3220	R3: 1.3540