CAD continues its gradual decline 5/10/2022

The Canadian dollar declined noticeably within the expected negative outlook during the previous technical report, touching the official target station at the price of 1.3510, recording its lowest level at 1.3505.

Technically, by looking at the 4-hour chart, we find the simple moving averages continuing their negative pressure on the pair from above, in addition to losing the clear bullish momentum on the stochastic indicator.

Therefore, the bearish scenario remains valid and effective, knowing that breaking 1.3500 will facilitate the task required to visit 1.3470 and 1.3410 next targets as long as the pair’s trading remains stable below the previously broken support of 1.3630.

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: 1.3470	R1: 1.3630
S2: 1.3405	R2: 1.3725
S3: 1.3305	R3: 1.3790