CAD back to negativity again 23/1/2023

The official bearish trend regained control of the Canadian dollar’s movements once again after it preferred to pass upwards to the pivotal resistance level at 1.3470, which forced it to trade negatively again to retest the support level of 1.3350.

Technically, our trading tends to be negative, relying on the negative pressure of the 50-day simple moving average, which meets near 1.3470, in addition to signs of a decline in momentum coming from the 14-day momentum indicator.

Therefore, the bearish scenario is the most likely during today’s session, targeting 1.3320, considering that breaking the mentioned level increases and accelerates the strength of the bearish trend, to be waiting for 1.3270.

The return of trading stability above 1.3470 can thwart the expected bearish scenario and lead the pair to temporarily restore the bullish track to visit 1.3510 and 1.3550, respectively.

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: 1.3320	R1: 1.3470
S2: 1.3270	R2: 1.3550
S3: 1.3180	R3: 1.3605