CAD may witness a decline 22/9/2023

The Canadian dollar achieved the upward targets required to be touched during the previous technical report at 1.3510 and then 1.3530, recording its highest level of 1.3524.

Technically, we are leaning toward negativity in our trading, relying on the pair’s failure to maintain its positive stability above the psychological barrier resistance of 1.3500, in addition to the negative signals coming from the Stochastic indicator, which has begun to lose upward momentum.

Therefore, we may witness a bearish bias during today’s trading session, targeting 1.3440 as the first target, knowing that the pair breaking the mentioned level is a negative pressure factor that opens the way to retest 1.3405, and losses may extend towards 1.3365.

From above, the return of trading stability with at least an hour candle closing above 1.3510 can thwart the downside attempts and lead the pair to recover with targets of 1.3550 and 1.3580.

Note: Today we are awaiting high-impact economic data issued, the preliminary reading of the services and manufacturing PMI index in Europe, the UK and the US, and we may witness high fluctuation in prices at the time of the news release.

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: 1.3440	R1: 1.3505
S2:  1.3405	R2: 1.3550
S3: 1.3365	R3: 1.3580