CAD is falling back 11/8/2022

The Canadian dollar declined significantly to start moving within the official descending path after it failed to stabilize for a long time above the resistance level of 1.2880. We mentioned during the previous report that the pair’s failure to maintain trading above 1.2850 renewed the chances of falling to visit 1.2810 and 1.2770, respectively, recording a low of 1.2750.

Technically, we believe that the bearish trend affects the pair’s movements most, based on the negative pressure of the simple moving averages and the negativity of the RSI.

From here, trading steadily below the pivotal resistance of 1.2880, we are targeting 1.2720, a first target, knowing that the decline below the mentioned level increases and accelerates the strength of the daily bearish trend, opening the door to visit 1.2670.

Note: The US Producer Price Index is due later in the session; it has a big impact and may cause price volatility.

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: 1.2720	R1: 1.2870
S2: 1.2665	R2: 1.2960
S3: 1.2575	R3: 1.3015