CAD breaks through the resistance 13/10/2023

Positive trading witnessed the movements of the Canadian dollar to reflect the downward trend as we expected, in which we relied on the stability of trading below 1.3650 at the time of the report. As a reminder, we indicated that the return of trading stability above 1.3650 leads the pair to the upward path again to retest 1.3720, recording its highest level of 1.3700.

Technically, and by looking at the 4-hour time frame chart, the pair returned to stability above the simple moving averages that hold the price from below, in addition to trading stability above the 1.3650 resistance level.

We may witness an upward bias during today’s session, provided that we witness a penetration and consolidation of the price above the psychological barrier resistance of 1.3700. This motivating factor increases the chances of touching 1.3730, a first target, and the gains may extend later to visit 1.3770.

From below, if the price sneaks below 1.3650, the pair returns to the official bearish path with an initial target of 1.3610 and later extends towards 1.3550 levels.

Note: Today we are awaiting high-impact economic data issued by the US, “Preliminary Consumer Confidence Reading – Michigan,” and from the UK, we are awaiting a speech by the president of the Bank of England, and we may witness high fluctuation in prices at the time the news is released.

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: 1.3610	R1: 1.3730
S2:  1.3535	R2: 1.3775
S3: 1.3480	R3: 1.3850