CAD maintains negative stability 13/9/2023

The Canadian dollar fell within the expected downward path, touching the first target required to be achieved during the previous technical report at 1.5350, recording its lowest level at 1.3543.

Technically, we are leaning towards negativity, relying on the negative intersection of the simple moving averages that continue to pressure the price from above, accompanied by clear negative features on the Stochastic indicator.

With intraday trading remaining below 1.3600 and generally below 1.3630, the bearish scenario remains the most preferable, targeting 1.3550 as the first target, and breaking it will extend the losses as we wait to touch 1.3515 and 1.3500, respectively.

Price’s consolidation above the resistance level of 1.3630 will immediately stop the downward trend and the pair will recover temporarily to visit 1.3675.

Note: Today we are awaiting the monthly and annual US inflation data, the “Consumer Price Index,” and we may witness high price fluctuations when the news is released.

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: 1.3550	R1: 1.3630
S2:  1.3515	R2: 1.3675
S3: 1.3470	R3: 1.3710