Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Encountering Strong Resistance
The Canadian dollar experienced negative trading in the initial sessions of the week, encountering robust resistance around 1.3480.
Technical Indicators Signal Negativity
Today’s technical analysis leans towards negativity, as evidenced by the negative intersection of simple moving averages pressuring the price from above. Additionally, the 14-day momentum indicator shows clear negative signals.
Anticipated Downward Trend
With daily trading below the resistance levels of 1.3480 and, crucially, 1.3520, the likelihood of a downward trend persists. Initial targets lie at 1.3430. Monitoring the pair’s behavior around this level is crucial, as a break would strengthen the daily downward trend, potentially leading to a direct hit at 1.3385.
Potential Reversal Conditions
Stability in trading above 1.3520 would halt the bearish trend, signaling a shift to the upward trajectory. Targets in this scenario start at 1.3550, with potential gains extending to 1.3590.
Warnings Amid Economic Events and Geopolitical Tensions
High-impact economic data from the US and UK, coupled with ongoing geopolitical tensions, may heighten price volatility. Caution is advised during these events.
Acknowledging High Risk
Given the geopolitical landscape and potential for volatility, it’s important to acknowledge the associated high-risk level.
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.
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