CAD: needs a directional signal 23/11/2022

Mixed trading dominated the movements of the Canadian dollar within a bearish slant to the downside after finding a solid resistance level of around 1.3460 to end the previous session’s trading at 1.3372.

Technically, and by looking closely at the 240-minute chart, we find that the simple moving average started to provide a positive impulse, and that contradicts the clear negativity signs on the stochastic on the 4-hour time frame.

We prefer to monitor the price behaviour of a pair until we get signals that show the direction more clearly:

Activating purchase orders requires breaching the resistance of the psychological barrier 1.3400, and we may witness a touch at 1.3445. We must pay close attention to the target level because breaching a catalyst enhances the chances of rising towards 1.3500.

A decline below 1.3350 is the starting signal for a bearish trend, with its initial target at 1.3310.

Note: We are awaiting high-impact economic data in the US, “the preliminary reading of the services and manufacturing PMI and Federal Reserve Committee meeting”

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: 1.3350	R1: 1.3445
S2: 1.3310	R2: 1.3505
S3: 1.3255	R3: 1.3550