CAD hovering around support 24/1/2023

Negative trading dominated the movements of the Canadian dollar yesterday within the expected bearish path during the previous technical report, approaching by a few points the required target at 1.3320, recording its lowest level at 1.3340.

Technically, looking at the 4-hour chart, we find attempts by Stochastic to obtain positive crossover signals. Still, the Simple Moving Averages continue to exert negative pressure on the price from above.

Although we tend to be negative, we prefer to wait for the confirmation of breaking the strong support level of the current trading level, 1.3330, which leads the pair to resume the bearish trend, paving the way to visit 1.3295/1.3300 as a first target, and then 1.3250.

The pair’s need to maintain trading above 1.3300 may force the pair to achieve some marginal rise, aiming to retest 1.3400 & 1.3470 before falling again.

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: 1.3330	R1: 1.3410
S2: 1.3295	R2: 1.3470
S3: 1.3250	R3: 1.3500