CAD outside the bounds of the bullish channel 13/3/2023

The Canadian dollar hit the resistance level of 1.3860 after attempting to approach the target mentioned in the previous report, 1.3890, to trade negatively again below 1.3780.

Technically, the current movements are witnessing a bearish direction accompanied by the negative pressure of the simple moving averages, which returned pressure on the price from above and a decline in momentum over the short-term intervals.

The bearish slope is the most likely, and we may witness a decline in the coming hours, targeting 1.3670 as a first target, and breaking it would lead the pair to resume the decline towards 1.3615 before determining the next price destination.

Price’s consolidation once again above the 1.3820 resistance level will stop the suggested bearish scenario, and the pair will resume the bullish path again towards 1.3860 & 13910.

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: 1.3670	R1: 1.3820
S2: 1.3615	R2: 1.3915
S3: 1.3520	R3: 1.3975