CAD building on support 21/2/2023

The Canadian dollar started its weekly trading upward, benefiting from the intraday consolidation above the 1.3430 support. The pair’s current movements are witnessing stability around its highest level during the morning trading of the current session, around 1.3475.

Technically, we are positive in our trading depending on the pair receiving a positive impulse from the 50-day simple moving average, which meets near 1.3410 and adds more strength in conjunction with the clear positive signs on the RSI.

Therefore, the possibility of witnessing a bullish trend during today’s session is still valid and effective, targeting 1.3500 and 1.3530 as initial targets, considering that confirming the breach of 1.3530 is a catalyst that enhances the chances of touching 1.3580.

Only from below, a decline below 1.3400, and most importantly, 1.3390, will immediately stop the suggested bullish scenario and lead the pair to a downside path, targeting 1.3335, before resuming the rise again.

Note: Today we are awaiting high-impact economic data issued by the Canadian economy, “Canadian inflation figures, Canadian retail sales,” and we may witness high volatility, in addition to the US services PMI.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

S1: 1.3430	R1: 1.3530
S2: 1.3390	R2: 1.3580
S3: 1.3335	R3: 1.3625