CAD needs a negative stimulus 12/10/2023

The technical outlook remains unchanged, and the pair’s movements did not change significantly, maintaining the expected bearish path, stable below the 1.3650 resistance level.

Technically, by looking at the 4-hour time frame chart, we find a negative intersection beginning to appear on the simple moving averages to return to pressuring the price from above, and this comes in conjunction with the clear negative signals on the Relative Strength Index.

From here, with daily trading remaining below the resistance level of 1.3650, the bearish scenario remains valid and effective, targeting 1.3545 as the first target, knowing that breaking it will extend the pair’s losses as we wait to touch 1.3500.

Only from above is the return of trading stability above 1.3650, leading the pair to the upward path again, to retest 1.3720 and 1.3760.

Note: Today we are awaiting highly influential economic data issued by the American economy, the “Consumer Price Index,” and we may witness high volatility 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: 1.3545	R1: 1.3650
S2:  1.3500	R2: 1.3720
S3: 1.3435	R3: 1.3770