CAD loses momentum 9/12/2022

The Canadian dollar reversed the expected bullish trend during the previous report, in which we relied on the stability of intraday trading above the support level of 1.3620, to decline to the downside as a result of approaching the resistance level of the psychological barrier 1.3600.

Technically, we tend towards negativity due to the price’s stability below the support level of 1.3620, in addition to the decline in momentum, and the stochastic losing bullish momentum.

We may witness a bearish bias in the coming hours, targeting 1.3530 as the first target, knowing that breaking the mentioned level will extend the pair’s losses, opening the door to 1.3480, unless we witness a bullish breach of the 1.3660 resistance.

Consolidation above 1.3660 might boost chances of retesting 1.3700 & 1.3740.

Note: Today we are awaiting high-impact data issued by the US economy, “the monthly producer price index and the initial reading of consumer confidence,” and we may witness high volatility in prices.

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: 1.3530	R1: 1.3660
S2: 1.3480	R2: 1.3740
S3: 1.3405	R3: 1.3790