CAD extends its gains 26/5/2023

Significant gains were witnessed by the Canadian dollar’s movements yesterday within the bullish path published during the previous technical report, touching the first target to be achieved at 1.3650, recording its highest level at 1.3654.

Technically, and by looking at the 4-hour chart, we find that the simple moving averages returned to hold the price from below. We also find that the RSI continues to provide its positive signals and the bullish technical formation shown on the chart.

The daily trend is bullish, and targets start at 1.3665, the first target and its breach increases and accelerates the strength of the bullish trend to visit 1.3690 next station, whose targets may extend later towards 1.3730, as long as trading is stable above 1.3540.

Closing the hourly candlestick below 1.3555, the previously breached resistance that turned it into a support level, delaying the chances of ascending, and we may witness some negative pressure to retest 1.3500.

Note: Today we are awaiting high-impact economic data issued by the US economy, “personal consumption spending,” and we may witness high price fluctuations 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: 1.3595	R1: 1.3665
S2: 1.3555	R2: 1.3700
S3: 1.3520	R3: 1.3735