CAD breaks through the resistance, the positivity remains 29/8/2022

As expected, the Canadian dollar achieved noticeable gains within the positive technical outlook, touching the awaited target at 1.3030, recording its highest level at the beginning of the first trading sessions this week at 1.3070.

Technically, and with careful consideration on the 4-hour chart, we find the pair confirmed the breach of the 1.3030 resistance level; in addition, it succeeded in forming a good support floor around 1.2950, ​​61.80% correction, accompanied by the continuation of the positive motive for the 50-day simple moving average.

Therefore, the idea of ​​continuing the rise is still intact, targeting 1.3100, a first target, and then 1.3125, considering that rising above 1.3125 is a catalyst that enhances the chances of advancing, waiting for 1.3180.

Declining below 1.2960, leading the pair directly towards retesting the pivotal support floor of 1.2860, before rising again.

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: 1.2960	R1: 1.3125
S2: 1.2850	R2: 1.3180
S3: 1.2790	R3: 1.3290