CAD building on support 5/7/2023

The Canadian dollar successfully retested the strong support floor at 1.3200, maintaining positive stability above the mentioned level, waiting for more gains.

Technically, looking at the 4-hour chart, we find that the 14-day momentum indicator continues to defend the bullish daily trend, stimulated by the positive impulse from the simple moving averages and the clear positive features on the stochastic.

Therefore, the bullish trend is the most likely during the day, targeting 1.3260 as the first target, and its breach is a catalyst that increases and accelerates the strength of the bullish trend, to be waiting for 1.3300 and 1.3340, respectively.

Only from below, the return of trading stability again below 1.3200, which leads the pair to a downward path, with targets of 1.3160 and 1.3130, respectively.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the Federal Reserve Committee statement,” and the “OPEC meeting”, and we may witness high volatility at the time of the news release.

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: 1.3205	R1: 1.3260
S2: 1.3175	R2: 1.3300
S3: 1.3130	R3: 1.3340