CAD is looking for a stronger trend 24/5/2023

The technical outlook is unchanged, the pair’s movements did not change significantly within uncertain attempts to achieve the required breach, and the current movements are still stable below the resistance of the psychological barrier of 1.3500.

Technically, and when looking closely at the 4-hour chart, we find that there is a conflict in the technical signals, the 50-day simple moving average is trying to provide a positive motive, and on the other hand, the stochastic is providing negative signals and starting to lose bullish momentum.

With conflicting technical signals, we prefer to monitor the price behavior to be in front of one of the following scenarios:

We need to see the price consolidating above 1.3500 to get an upward trend, targeting 1.3535 and 1.3570, respectively. At the same time, confirmation of breaking the support floor at 1.3470 would lead the pair to complete the downside track, and we wait for negative targets that start at 1.3440 and extend to 1.3410.

Note: Today we are awaiting highly sensitive economic data issued by the US economy, “the results of the Federal Reserve Committee meeting,” the speech of the US Treasury Secretary, and we are awaiting “inflation” data from the United Kingdom and the talk of the “Governor of the Bank of England,” in addition to the report issued by the International Energy Agency regarding Oil stocks, and we may witness high volatility in prices 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: 1.3475	R1: 1.3535
S2: 1.3445	R2: 1.3575
S3: 1.3405	R3: 1.3600