CAD approaching strong support 14/9/2023

The downward trend continues to control the movements of the Canadian dollar within the expected downward trend, reaching the first downward target to be achieved at 1.3550, recording its lowest level at 1.3521.

Technically, we are leaning towards negativity, relying on the negative crossover of the simple moving averages that continue to pressure the price from above and the clear negative signals on the Relative Strength Index.

From here, with intraday trading remaining below 1.3570, the bearish scenario remains valid and effective, targeting 1.3500. Pay close attention if the strong support level 1.3500 is touched due to its importance to the general trend in the short term, and there may be an upward rebound after touching the level above.

We remind you that the price’s consolidation and stability above the 1.3570 resistance may lead the pair quickly and directly to achieve gains starting at 1.3600 and then 1.3630 initially.

Note: Today we are awaiting highly influential economic data issued by the European economy, “the monetary policy statement of the European Central Bank,” “interest rates on the euro and the press conference of the European Central Bank,” and regarding the American economy, we are awaiting the “producer prices” index and the “retail sales” index.

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: 1.3550	R1: 1.3630
S2:  1.3515	R2: 1.3675
S3: 1.3470	R3: 1.3710