CAD faces strong resistance 4/8/2022

For the third session in a row, the Canadian dollar hits the strong resistance level published during the week at 1.2885, which forced it to trade negatively, maintaining the bearish context as we expected.

Technically, we tend to the negativity, relying on the support of the 50-day simple moving average for the bearish bias, which is exerting its negative pressure on the price from above, in addition to the regular work within the descending minor channel as shown on the 4-hour chart.

Therefore, we maintain our negative expectation and await confirmation of breaking the 1.2830 support, which facilitates the task to visit 1.2780, the first target, and then 1.2730, the next official station.

Rising again above 1.2885, nullifying the activation of the suggested bearish scenario, and we will witness a temporary recovery for the pair, targeting 1.2925 and 1.2955 initially.

Note: High-impact economic data from the British economy is due today; interest rate decision, the Governor of the Bank of England’s speech and the monetary policy statement issued by the Bank of England and the monetary policy summary, and we may witness high volatility in prices.

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: 1.2780	R1: 1.2885
S2: 1.2730	R2: 1.2925
S3: 1.2695	R3: 1.2980