CAD testing support 18/8/2023

Limited negative trades dominated the movements of the Canadian dollar during the previous trading session to find the support level of the psychological barrier that managed to limit the bearish tendency so that the pair maintained the positive path.

From the point of view of technical analysis today, the 50-day simple moving average is still carrying the price from below, in addition to the positive signs coming from the RSI, which is stable above the mid-line, in addition to breaching the resistance of the psychological barrier 1.3500, which turned into a support level, according to the concept of reciprocity.

We continue the rise, targeting 1.3560 as a first target, considering that the price’s breach of the mentioned level is a catalyst that enhances chances of rising towards 1.3600 and 1.3640, respectively.

It should be noted that the confirmation of breaking the floor of the 1.3500 support, 38.20% correction, then 1.3470, can thwart the bullish scenario, and we are witnessing the beginning of the formation of a bearish slope aimed at retesting the main support 1.3430 & 1.3400.

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: 1.3510	R1: 1.3565
S2: 1.3475	R2: 1.3600
S3: 1.3430	R3: 1.3640