CAD is waiting for pending orders to be activated 22/5/2023

Marginal rise dominated the Canadian dollar’s movements within, but limited attempts to rise after the pair fail to stabilize for a long time above the resistance level of the psychological barrier 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 1.3525 and 1.3555, respectively. At the same time, confirmation of breaking the support floor at 1.3470 would lead the pair to complete the downside path, and we wait for negative targets that start at 1.3440 and extend to 1.3410.

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: 1.3470	R1: 1.3525
S2: 1.3440	R2: 1.3555
S3: 1.3405	R3: 1.3580