CAD continues its gradual decline 31/5/2022

Negative trading continued to dominate the movements of the Canadian dollar within the expected negative outlook during the last analysis, in which we relied on confirming the pair’s breach of the 1.2770 support level, touching the first target that is required to be touched, 1.2665, recording its lowest level during last Monday at 1.2650.

Technically, we tend to the negativity, relying on the negative pressure coming from the 50-day moving average and the stability of trading below the resistance level of 1.2720.

The decline below 1.2650 leads the pair to complete the downside path, which targets around 1.2635 and 1.2600 initially—knowing that trading below 1.2600 constitutes a negative pressure factor on the pair’s movements and opens the door towards 1.2565.

Note: the 14-day momentum indicator is trying to obtain positive signals on the short intervals. We may witness a slight bullish slope that does not contradict the daily bearish trend as long as the price is stable below 1.2720.

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: 1.2635	R1: 1.2720
S2: 1.2600	R2: 1.2770
S3: 1.2565	R3: 1.2800