CAD looking for extra momentum 16/5/2023

The Canadian dollar rose marginally yesterday but failed to maintain its gains above the resistance level of the psychological barrier 1.3500, as the current movements witness stability below it.

Technically, we find the 50-day simple moving average trying to push the price to the upside, and we find the RSI trying to provide positive signs on the short time frames.

We tend to rise, but with caution; targeting 1.3500, and breaching it is a catalyst that enhances chances of rising towards 1.3540 & 1.3580, on the condition that the pair maintains stability above 1.3430.

Note: Stochastic still provides negative signals, and we may witness some fluctuation until we get the expected direction.

Note: Today, we are waiting for high-impact economic data issued by the US economy, “US retail sales,” and from the United Kingdom, we are waiting for “the change in unemployment benefits” in addition to “inflation data” from Canada and the speech of the President of the European Central Bank, and we may witness high volatility in prices at the time Release the news.

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: 1.3430	R1: 1.3540
S2: 1.3390	R2: 1.3610
S3: 1.3320	R3: 1.3655