CAD may continue to make gains 6/7/2023

The Canadian dollar jumped within the expected positive outlook during the technical report issued yesterday, touching the first official target at 1.3300, recording its highest level at 1.3305 during today’s morning trading, and the current movements are witnessing stability near its highest level of 1.3305.

Technically, and by looking at the 4-hour chart, we find that the 14-day momentum indicator continues to defend the bullish daily direction and is stimulated by the positive motive coming from the simple moving averages, in addition to confirming the breach of the resistance level of 1.3260 and its transformation into a support level, according to the concept of reciprocating roles.

Therefore, this encourages us to maintain our positive expectations, continuing towards the second target of the previous report 1.3340, and the gains may extend later to visit 1.3365.

Only from below, the return of trading stability again below 1.3250, leading the pair to a temporary bearish path, aiming to retest 1.3200.

Note: Today we are awaiting high-impact economic data issued by the US economy, “jobs data in the non-agricultural private sector,” “vacant jobs and labor turnover,” service purchasing managers, “OPEC meeting,” and “the report issued by the International Energy Agency on oil stocks.” We may witness high volatility at the time of issuance of 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: 1.3250	R1: 1.3335
S2: 1.3190	R2: 1.3365
S3: 1.3160	R3: 1.3420