CAD starts with negativity, eyes on BoC 12/4/2023

Negative trades dominated the movements of the Canadian dollar within the negative outlook, as we expected during the previous analysis, to start with negative pressure on the support floor published in the last analysis at 1.3480.

Technically, the Canadian dollar failed to stabilize over the negative barrier of 1.3500, and the simple moving averages returned pressure on the price from above to support the possibility of a decline.

Therefore, the bearish slope may be preferable, targeting 1.3440 and 1.3410 as official awaited stations, unless we witness any trading above 1.3500. As a reminder, breaching 1.3500 can postpone the suggested bearish bias, and we may witness a new attempt to build a rising wave, targeting 1.3600.

Note: The risk level is high.

Note: Today, we are waiting for high-impact economic data issued by the US economy: the results of the Federal Reserve Committee meeting, “consumer price index” and from the Canadian economy, we await ” the interest of the Bank of Canada and the press conference of the Bank of Canada” in addition to “the speech of the Governor of the Bank of England.” We may witness high volatility at the time of the news release.

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: 1.3440	R1: 1.3500
S2: 1.3410	R2: 1.3540
S3: 1.3355	R3: 1.3605