CAD: Canadian maintains negative stability 13/6/2023

The technical outlook is unchanged, and the Canadian dollar did not witness a significant technical change, maintaining the bearish context. The pair’s intraday movements are stable below the resistance level of 1.3390.

Technically, the pair breached the support level at 1.3420 and turned into a resistance level according to reciprocating roles. We find the simple moving averages continue to pressure the price from above and support the daily bearish price curve, in addition to the clear negativity features on the stochastic on the 4-hour time frame.

The daily trend tends to be down, knowing that stability and constancy of the price below 1.3350 facilitates the task required to visit 1.3310, knowing that breaking it increases and accelerates the strength of the bearish trend, opening the door to 1.3260, and the gains may extend later towards 1.3205 as long as trading remains stable below 1.3420.

The price’s consolidation and the upward breach of the previously broken support 1.3420 postpone the chances of a downside move and leads the pair to retest 1.3475 & 1.3500.

Note: Today we are awaiting high-impact economic data issued by the US economy “consumer price index” and from the United Kingdom “Bank of England governor’s speech” 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: 1.3310	R1: 1.3375
S2: 1.3260	R2: 1.3420
S3: 1.3205	R3: 1.3490