CAD breaks the support 27/11/2023

In the previous report, we maintained a neutral stance, emphasizing that the activation of selling positions would hinge on a breach below the robust support level of 1.3680. Such a breach could pave the way for the pair to reach 1.3600, and the pair indeed recorded its lowest level at 1.3593.

From a technical analysis perspective today, focusing on the 4-hour time frame chart, the 50-day simple moving average continues to act as an obstacle for the pair, reinforcing the potential for a decline. Additionally, the pair has successfully confirmed the breach of the 1.3680 support, now turned into a resistance level.

Hence, the likelihood of a downward trend persists throughout the day, particularly if there is a break below 1.3580, with the target set at 1.3530. This remains the anticipated target unless there is a decisive move above 1.3680, and more importantly, 1.3700.

It’s essential to note that the Stochastic indicator is approaching oversold conditions, suggesting potential price fluctuations until a clear trend is established. Caution is advised.

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: 1.3580	R1: 1.3700
S2:  1.3530	R2: 1.3765
S3: 1.3465	R3: 1.3820