CAD breaks through the resistance 14/9/2022

The Canadian dollar jumped during the previous trading session to return to the bullish track again after it confirmed the breach of the resistance level of 1.3120, recording the highest level at 1.3181.

Technically, and with a careful look at the 4-hour chart, we find the simple moving average has returned to hold the price from below. This comes in conjunction with the pair getting positive signs from the 14-day momentum indicator.

From here, and steadily trading above the previously breached resistance, which turned it into a support level at 1.3110, the bullish bias is most likely, targeting 1.3245, a first target, and gains may extend later towards 1.3275.

The breach again below 1.3110 leads the pair to retest 1.3020 directly.

Note: We are waiting for US inflation data “Producer Price Index,” which has an impact, and we may witness high price fluctuations.

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: 1.3020	R1: 1.3245
S2: 1.2870	R2: 1.3330
S3: 1.2790	R3: 1.3470