CAD: needs to monitor movements 17/10/2022

Mixed trading dominated the Canadian dollar’s movements at the end of last week’s trading within an unclear daily direction, to decline quickly as a result of approaching the resistance level of the psychological barrier of 1.3900.

Technically, the current movements of the pair are witnessing a stable bearish tendency around the lowest level during the early morning trading session at 1.3810. However, with careful consideration on the 240-minute chart, we find the stochastic indicator begins to provide negative signals that support the possibility of a drop, in addition to the stability of daily trading below 1.3890.

Despite the technical factors supporting the decline, we prefer to confirm breaking 1.3800, which might facilitate the task required to visit 1.3760. We should pay attention to 1.3760, given its importance for the general trend on the intraday term, and breaking it opens the door towards 1.3715.

Note: the risk level may be high today.

Consolidation again above 1.3890 is leading the pair to regain the official bullish path so we will wait for 1.4000.

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: 1.3715	R1: 1.3910
S2: 1.3610	R2: 1.4000
S3: 1.3520	R3: 1.4100