CAD continues to drop 14/7/2023

Significant negative trades dominated the movements of the Canadian dollar within the expected technical outlook during the previous technical report, touching the first target at 1.3090, recording its lowest level at 1.3092.

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%, which has been transformed into a resistance level according to the concept of exchanging roles, and we find that the simple moving averages continue to exert negative pressure on the price from above, stimulated by the negative signals on the 14-day momentum indicator.

From here, with trading steadily below the intraday level of 1.3165, the bearish scenario remains valid and effective, targeting 1.3060, and breaking it increases and accelerates the strength of the bearish trend, completing towards 1.3020.

Activating the bearish scenario depends on trading remaining below 1.3200, as closing an hourly candlestick above it allows the pair to retest 1.3270.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the preliminary reading of consumer confidence,” and we may witness high volatility during 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: 1.3060	R1: 1.3165
S2: 1.3020	R2: 1.3230
S3: 1.2960	R3: 1.3270