CAD needs to break the support 23/11/2023

The Canadian dollar remains in a negative trading stance, aligning with the anticipated downward technical outlook and maintaining negative stability. The currency touched the officially targeted level of 1.3680, recording its lowest point at this level.

Upon closer examination of the 4-hour time frame chart, it is observed that the simple moving average is establishing a resistance level around 1.3770, reinforcing its significance. Additionally, clear negative signals are evident on the 14-day momentum indicator.

The potential for a bearish trend during today’s trading session is apparent, contingent upon the consolidation of prices below the robust support at 1.3680. Such consolidation represents a negative pressure factor, with initial targets at 1.3600 and extending towards 1.3575.

Conversely, if prices consolidate above 1.3740, especially 1.3770, it would lead to a recovery in the pair, completing its upward trajectory towards 1.3800 and 1.3830.

Note: Today, we anticipate highly impactful economic data from the Eurozone, including the preliminary readings of the services and manufacturing PMI index from France and Germany. Additionally, from the United Kingdom, we await the preliminary reading of the services and manufacturing PMI index. These releases may lead to significant price fluctuations 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: 1.3650	R1: 1.3740
S2:  1.3600	R2: 1.3795
S3: 1.3575	R3: 1.3830