CAD continues to decline 5/6/2023

The technical outlook remains unchanged, and the pair’s movements did not change significantly, maintaining negative stability after failing to achieve a daily closing above the resistance of the psychological barrier of 1.3500.

From a technical point of view, today, we notice the continuation of the clear negative crossover signs on the stochastic, which started to lose bullish momentum gradually, and this comes in conjunction with the negative pressure of the simple moving averages.

The bearish direction is the most likely during today’s session, and we await the confirmation of breaking 1.3400, which will extend the pair’s losses, as we are waiting to touch 1.3385 & 1.3350 as the next targets.

From above, it has crossed upwards, and the price’s consolidation above 1.3510/1.3500 can thwart the suggested bearish scenario, and the pair begins to restore the bullish path towards 1.35350.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Service PMI” and “European Central Governor Lagarde’s speech,” and we may witness high price fluctuations 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: 1.3415	R1: 1.3470
S2: 1.3385	R2: 1.3510
S3: 1.3350	R3: 1.3550