CAD is waiting for a further decline 8/5/2023

The Canadian dollar declined significantly to incur significant losses, surpassing the bearish target published in the previous report at 1.3510. It is now settling around its lowest level during today’s morning session 1.3370.

Technically, and with a closer look at the chart, we find that the simple moving averages returned negative pressure on the price from above, accompanied by clear negative signs on the RSI, which settled below the mid-line 50.

Therefore, we hold onto our negative outlook, targeting 1.3310 as a first target, and breaking it increases and accelerates the strength of the bearish daily trend, to be waiting for a touch of 1.3255 as long as daily trading is stable below the resistance level of 1.3485.

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: 1.3310	R1: 1.3485
S2: 1.3255	R2: 1.3590
S3: 1.3145	R3: 1.3655