CAD: faces temporary negative pressure 29/9/2022

The Canadian dollar failed to maintain gains above 1.3800, to return to test the 1.3620 support level, recording its lowest level at 1.3600.

Technically, the negativity started to appear on the stochastic indicator, which began to lose the bullish momentum initially, and this comes with the daily trading remaining below 1.3660 and, most importantly 1.3700.

Therefore, the possibility of a drop during today’s session is the most likely, knowing that the decline below 1.3600 puts the price under strong negative pressure, and we will witness touching 1.3530 and 1.3470, respectively.

Activating the suggested scenario depends on the stability of intraday trading below 1.3660 and below 1.3700, knowing that rise again above 1.3700 leads the pair to the official bullish path with an initial target of 1.3760 and 1.3810, respectively.

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: 1.3530	R1: 1.3760
S2: 1.3450	R2: 1.3910
S3: 1.3300	R3: 1.3990