CAD stable below support 13/7/2023

Significant negative trades dominated the movements of the Canadian dollar within the expected technical outlook during the previous technical report, touching the official target station 1.3140, recording its lowest level at 1.3142.

Technically, and with a closer look at the 240-minute chart, we find that the pair is stable below the support level of the psychological barrier 1.3200, Fibonacci correction of 61.80%, and we find that the simple moving averages continue to exert negative pressure on the price from above, stimulated by the clear negative signals on the RSI.

From here, with steady trading below the resistance level of 1.3220, the bearish scenario remains valid and effective, targeting 1.3140, and breaking it increases and accelerates the strength of the bearish trend, continuing towards 1.3090.

Activating the bearish scenario depends on trading remaining below 1.3220, noting that closing an hourly candlestick above it allows the pair to retest 1.3270.

Note: Today we are waiting for high-impact economic data issued by the US economy, “US inflation data, producer price index” from England, and we are waiting for “Gross Domestic Product”, and 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: 1.3130	R1: 1.3220
S2: 1.3090	R2: 1.3270
S3: 1.3040	R3: 1.3315