CAD still holding above support 24/8/2023

The Canadian dollar achieved the first official target required during the previous report, at 1.3600, recording its highest level at 1.3605.

Technically, the pair’s movements witnessed a rapid bearish tendency as a result of the collision with the resistance of the psychological barrier 1.3600, which forced the pair to retest 1.3515; by looking at the 4-hour chart, we find the pair is still stable above 1.3500, the support represented by Fibonacci correction 38.20, which is calculated by the continuation of the pair’s occurrence, on the positive impulse of the 50-day simple moving average.

We continue the rise, targeting 1.3575 as the first target, considering that the price’s breach of the mentioned level is a catalyst that enhances chances of rising towards 1.3640, and the gains may extend later towards 1.3670.

It should be noted that confirmation of breaking the support floor of 1.3500, 38.20% correction, nullifies the activation of the suggested scenario, and leads the pair to retest 1.3470, and then 1.3430, before attempting to rise again.

Note: Today we are awaiting economic data from the summit of the “BRICS”, and “Jackson Hole Economic Forum”, and we may witness high 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: 1.3490	R1: 1.3580
S2: 1.3455	R2: 1.3640
S3: 1.3390	R3: 1.3670