CAD confirms the break 2/6/2023

Negative trades dominated the Canadian dollar within the expected bearish path after it failed to maintain its positive stability above 1.3550, surpassing the bearish targets that should have been touched at 1.3500, recording its lowest level at 1.3427.

From a technical point of view, today, with the pair’s success in confirming breaking the support floor at 1.3550 and turning it into a resistance level, the pair continues to move below the simple moving averages that support the daily bearish price curve.

The bearish direction is the most likely during the day, targeting 1.3375 as the first target and 1.3320 as the official expected station.

From above, crossing upwards and rising again above 1.3535 nullifies the activation of the bullish scenario, and the pair returns to the official bullish path, with initial targets starting at 1.3630.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “US jobs data”, “average wages”, and US unemployment rates, and we may witness a high fluctuation in prices 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: 1.3375	R1: 1.3535
S2: 1.3320	R2: 1.3640
S3: 1.3220	R3: 1.3695