CAD May Extend Its Gains 30/10/2023

As anticipated in our previous technical report, the Canadian dollar successfully reached its upward target at 1.3880, marking its peak at this level.

From a technical perspective, a positive outlook persists, supported by the 50-day simple moving average and stable intraday trading above the 1.3815 support level.

As long as the pair maintains stability above 1.3815, our optimism prevails, with a target set at 1.3900. Consolidation above this level serves as a catalyst, enhancing the likelihood of an upward push towards 1.3940, a significant milestone.

However, a return to trading below the 1.3815 support level would temporarily delay the upward potential. It’s worth noting that this doesn’t negate the possibility of a future rise, although we might witness a retest of 1.3760 and 1.3720 before renewed upward attempts.

A word of caution: The Stochastic indicator has begun to signal negativity, indicating potential price fluctuations before a clear direction is established. Investors are advised to monitor the market closely and exercise prudence in their trading decisions.

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: 1.3815	R1: 1.3900
S2:  1.3760	R2: 1.3940
S3: 1.3720	R3: 1.3980