CAD: continues to make gains 6/7/2022

The Canadian dollar jumped, achieving noticeable gains, building on consolidation above the 1.2950 resistance level, touching our awaited target at 1.2980, recording the highest level at 1.3086 during the previous trading session.

Technically, the positive stimulus comes from the 50-day simple moving average and the pair’s pivot above the psychological support level of 1.3000.

Therefore, completing the rise is still valid and effective, targeting 1.3085, bearing in mind that consolidation above the target level can consolidate the pair’s gains, opening the door to visit 1.3135, and gains may extend later towards 1.3170 as long as trading is stable above 1.2770.

The return of trading stability below 1.2970 puts the price under temporary negative pressure to achieve the idea of ​​retesting 1.2900 and 1.2860 before rising again.

Note: The Fed’s statement is due today and could lead to 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: 1.2900	R1: 1.3135
S2: 1.2750	R2: 1.3230
S3: 1.2660	R3: 1.3370