CAD is facing negative pressure 7/3/2023

The Canadian dollar showed some bearish bias due to the rise in US crude oil prices, finding a strong resistance around 1.3630, which constitutes an obstacle to the continuation of the increase.

From the point of view of technical analysis today, the stochastic indicator started to lose its bullish momentum gradually, and this comes as the bullish momentum is restricted to short-term intervals.

We tend to expect a bearish bias in the coming hours, targeting 1.3575 as the first target, knowing that the decline below the mentioned level increases the negative pressure on the pair, targeting a retest of 1.3540 before repeating attempts to rise again.

Only from above, the price’s consolidation above 1.3630 invalidates the activation of the bearish scenario completely, and the pair recovers as we wait for 1.3670 and 1.3700, respectively.

Note: Today, the markets are awaiting the semi-annual testimony of Federal Reserve Chairman Jerome Powell before the Senate, and we may witness high volatility.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

S1: 1.3575	R1: 1.3625
S2: 1.3540	R2: 1.3670
S3: 1.3500	R3: 1.3705