Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Canadian dollar continues to exhibit positive stability, benefitting from its position above the psychological barrier support level of 1.3500, reaching its highest point at 1.3572.
Technical Analysis Perspective:
Today’s technical analysis leans towards positivity, hinging on the confirmation of the pair’s breach above the 1.3520 resistance level. Additionally, the return of the simple moving averages to support the price from below further bolsters the positive outlook. This alignment is complemented by clear signals on the 14-day momentum indicator, indicating upward momentum.
Potential Upside Momentum:
With daily trading sustained above 1.3520, the upward trend appears most likely. A decisive breach of the 1.3620 level would serve as a catalyst, enhancing the prospects of a further ascent towards 1.3675.
Bearish Scenario:
However, a close of the hourly candle below 1.3500 would delay the anticipated upward movement. In such a scenario, a retest of the 1.3470 support level may occur before any subsequent attempts to resume the upward trajectory.
Cautions and Warnings:
Traders should note that the Stochastic indicator is attempting to shed its current negativity, potentially signaling a shift in sentiment. Moreover, it’s important to exercise caution, particularly with high-impact economic data releases expected from the British and US economies today. These releases, including monthly gross domestic product figures, retail sales, unemployment benefits, and the New York State manufacturing index, may lead to increased price fluctuations. Additionally, the ongoing geopolitical tensions elevate the risk level, potentially contributing to heightened price volatility.
Risk Management Considerations:
Given the high level of risk associated with the current market conditions, traders should implement robust risk management strategies to safeguard against potential losses.
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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