CAD faces resistance 9/8/2022

Negative trading has regained control over the movements of the Canadian dollar after it failed to stabilize for a long time above the strong resistance level published during the previous analysis at 1.2930, which forced it to trade negatively again.

Technically, the pair’s current movements are witnessing a return to stability below 1.2870, and we also find the 50-day simple moving average to pressure the price from above.

From here, and steadily trading below 1.2880, the bearish slope remains the most preferred, targeting 1.2810, knowing that breaking it consider as a negative pressure factor on the pair, waiting to touch 1.2770 unless we witness stability of the price above 1.2880.

The upside move above the aforementioned strong resistance will lead the pair to recover, and we are targeting a retest of 1.2930 initially.

Note: Stochastic is trying to gain additional momentum.

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: 1.2810	R1: 1.2920
S2: 1.2770	R2: 1.2990
S3: 1.2705	R3: 1.3030