CAD breaks resistance and positivity remains 8/3/2023

The Canadian dollar returned to achieving gains after it ended the bearish slope and succeeded in building on the strong support floor of 1.3630, explaining that the price’s consolidation above 1.3630 completely invalidates the activation of the bearish scenario. The pair recovers, waiting for 1.3670 and 1.3700, respectively, to record its highest level at 1.3770.

Technically, the simple moving averages provide a positive motive in support of the bullish daily curve of prices and the positive momentum signals coming from the 14-day momentum indicator on the short-term frames.

From here, and with trading remaining above 1.3680/1.3700, the bullish bias is the most favourable during today’s trading session, targeting 1.3830 as the first target and then 1.3890 as the next stop.

From below, the return of trading stability below 1.3660 negates the suggested scenario and puts the price under strong negative pressure, as its initial target is around 1.3540.

Note: Today, we are awaiting high-impact economic data, and we may witness high volatility in prices, and irregular movements may occur:

• ADP Employment Change 

• JOLTS Job Openings in US and Employment Change in Eurozone

• The semi-annual testimony of Jerome Powell, Chairman of the Federal Reserve, before the Senate.

• ECB’s President Lagarde’s speech 

• Bank of Canada interest rate decision and statement.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

S1: 1.3660	R1: 1.3830
S2: 1.3540	R2: 1.3890
S3: 1.3485	R3: 1.4000