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Negative movements regained control over the Canadian dollar after it failed to stabilize over the psychological barrier of 1.3200, to start its weekly movements with a bearish bias.
Technically, and with a closer look at the 240-minute chart, we find that the pair is stable below the support level of the psychological barrier 1.3200, Fibonacci retracement of 61.80%, which has been converted into a resistance level according to the concept of role exchange, and we find that the simple moving averages continue to exert negative pressure on the price from above, stimulated by the signals Clear negativity on the 14-day momentum indicator.
From here, with steady trading below the intraday level below 1.3200, the 61.80% correction, and most importantly 1.3220, the bearish scenario remains valid and effective, targeting 1.3150, and breaking it increases and accelerates the strength of the bearish trend, continuing towards 1.3090, an official station, and the losses may extend later towards 1.3020.
Activating the bearish scenario depends on trading remaining below 1.3225, and breaching it nullifies the activation of the suggested scenario, and we are witnessing the beginning of forming an upward attack towards 1.3270 & 1.3300.
Note: Today we are awaiting high-impact economic data issued by the US economy “retail sales” and from Canada, we await the “consumer price index” 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.
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