CAD is facing negative pressure 17/1/2023

Negative trades continued to dominate the Canadian dollar after it failed to surpass the strong resistance level at 1.3470, which formed a strong resistance level that forced the pair to maintain the bearish bias.

Technically, and by looking at the 240-minute chart, we find that the simple moving averages continue to pressure the price from above, accompanied by a decline in the clear momentum on the 14-day momentum indicator.

The expected bias tends to be downward, with daily trading remaining below 1.3470, targeting 1.3360 as a first target, and breaking it would extend the pair’s losses towards 1.3320, a next official stop.

Remember that the price’s consolidation above 1.3470 will immediately stop the suggested bearish scenario, and the pair will recover temporarily to retest 1.3500 & 1.3540.

Note: Today we are awaiting high-impact data issued by the Canadian economy, “Canadian Inflation Data”, and we may witness high volatility at the time of the news release.

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: 1.3360	R1: 1.3430
S2: 1.3320	R2: 1.3470
S3: 1.3280	R3: 1.3505