CAD breaks through the resistance 19/10/2023

Positive trades dominated the Canadian dollar’s movements, reflecting the downward trend we expected. We relied on trading stability below 1.3700. As a reminder, we indicated that moving upwards and consolidating above 1.3700 would immediately stop the expected downward trend. The pair would recover to retest 1.3740, recording its highest level. During early trading in today’s session, 1.3735 compensated for the short position.

Technically, with the pair’s success in stabilizing above the previously breached resistance at 1.3700, in addition to the positive incentive coming from the simple moving averages that returned to hold the price from below.

We may witness an upward trend during today’s trading session. The first target is 1.3770, and breaching it will enhance the gains as we wait for 1.3810, the next official station.

Only from below can trading stability return again below the previously breached resistance, which was converted to the support level of 1.3650. This level can thwart the bullish scenario and put the pair under negative pressure again, with targets starting at 1.3600 and extending to visit 1.3575.

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: 1.3655	R1: 1.3770
S2:  1.3575	R2: 1.3810
S3: 1.3530	R3: 1.3890