CAD continues the decline 1/9/2023

The Canadian dollar achieved the first bearish target required to be touched during the previous technical report at 1.500, recording its lowest level at 1.3490.

Technically, by looking at the 4-hour chart, we find the simple moving averages continuing to exert negative pressure on the pair, in addition to trading stability below the previously broken support 1.3550.

This encourages us to maintain our negative outlook, knowing that sneaking below 1.3480 will facilitate the task required to retest 1.3450 and 1.3410, respectively, as long as trading remains stable below 1.3550.

Note: Today we are awaiting high-impact economic data issued by the American economy (US jobs data NFP, average wages, unemployment rate and manufacturing PMI), and from the Canadian economy, we are awaiting “Gross Domestic Product” and we may witness high volatility at the time the news is released.

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: 1.3480	R1: 1.3550
S2: 1.3450	R2: 1.3590
S3: 1.3410	R3: 1.3620