CAD building on support and may witness an upward trend 9/6/2022

The movements of the Canadian dollar witnessed a positive trading session within the idea of ​​a bullish bias, as we expected during the previous analysis, building on the 1.2500 support floor to achieve a bullish slope that targeted a retest of 1.2570.

From the technical analysis point of view today, we tend to complete the bullish bias, relying on the positive signals coming from the RSI on the 60-minute time frame and the stability of trading above 1.2500.

Therefore, the bullish bias is the most preferred today, targeting 1.2600, considering that its breach is a catalyst that may enhance the pair’s gains towards 1.2660 as long as the price is stable above 1.2500.

We remind you that the return of the stability of trading below 1.2500 can thwart the idea of ​​the bullish bias completely and lead the pair to the official descending path with an initial target of 1.2465 and extends towards 1.2410. Note: The general trend is still down.

Note: ECB monetary policy statement and press conference are due today and may cause some volatility.

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: 1.2520	R1: 1.2600
S2: 1.2465	R2: 1.2660
S3: 1.2410	R3: 1.2700