Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Canadian dollar continues to exhibit an upward trend, in line with the anticipated bullish context outlined in the previous technical report. The pair successfully established a base around the support level of 1.3320.
In terms of technical analysis, a closer examination of the 4-hour time frame chart reveals ongoing positive signals from the Relative Strength Index (RSI). Additionally, the pair is receiving positive reinforcement from the 50-day simple moving average.
With trading stability maintained above 1.3220, the positive expectations persist. The initial target is set at 1.3400, and surpassing this level could serve as a catalyst for further upward movement towards 1.3430 and 1.3460, respectively.
However, if the support floor at 1.3320 is breached, confirmed by the closing of at least a one-hour candle, the likelihood of a rise diminishes. In such a scenario, a retest of 1.3265 and 1.3230 may be observed before any potential resumption of the upward trajectory. Traders are advised to monitor price movements closely for informed decision-making.
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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