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Negative trading prevailed in the movements of the Canadian dollar during the previous trading session, aligning with the anticipated negative outlook. The pair touched the first target at 1.3465 and came close, within a few points, to reaching the second target at 1.3420, marking its lowest point at 1.3440.
From a technical analysis perspective today, the current movements indicate a bearish bias below the 1.3500 level. A detailed examination of the 4-hour chart reveals that the Stochastic indicator has started to signal negative crossovers and is losing bullish momentum.
Consequently, the downward trend remains intact, with a target set at 1.3445 as the first objective. A breach of this level would extend the pair’s losses, potentially leading to a direct move towards 1.3405, the subsequent station.
On the upside, a crossing upwards and consolidation of the price above 1.3510 would postpone the likelihood of a decline, albeit not eliminating it entirely. In such a scenario, we may witness attempts to retest 1.3550 before a potential downward move resumes.
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.
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