CAD back to positivity 6/12/2022

The Canadian dollar jumped yesterday to reverse the expected bearish trend during the previous analysis, in which we relied on trading stability below 1.3480, explaining that consolidation above the aforementioned level is capable of completely thwarting the suggested scenario, and the pair may recover with a bullish target first at 1.3560, recording its highest level at 1.3605.

Technically, the pair’s success in breaching 1.3525 is a positive factor motivated by the positive motivation from the simple moving averages, which returned to hold the price from below.

We may witness an upward trend during today’s session, but on the condition that we witness a clear and strong breach of the resistance level of the psychological barrier 1.3600, and that increases the chances of touching 1.3665 & 1.3710 unless we witness any trading below 1.3520.

Note: Stochastic is around overbought areas.

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: 1.3450	R1: 1.3665
S2: 1.3305	R2: 1.3745
S3: 1.3220	R3: 1.3885