CAD: negative pressure exists 9/5/2023

Significant negative trades dominated the movements of the Canadian dollar during the first trading sessions of this week within the expected negative outlook, touching the bearish target that should be achieved at 1.3310, recording the lowest at 1.3313.

Technically, the support levels posted at 1.3315 limited the bearish bias and forced the pair to achieve some bullish retracement to hover around its high level during early trading at 1.3370. However, a closer look at the 4-hour chart shows that stochastic started to lose momentum, accompanied by the continuation of negative pressure from the simple moving averages.

Therefore, we hold onto our negative expectations, knowing that the price’s decline below 1.3325 extends the pair’s losses as we await touching 1.3280 and 1.3250 for bearish targets, respectively, unless we witness the price consolidation above 1.3400.

The price’s consolidation above the resistance mentioned above postpones the chances of a decline but does not cancel it, and we may witness a temporary recovery, aiming to retest 1.3435 & 1.3470 before starting the decline again.

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: 1.3325	R1: 1.3400
S2: 1.3280	R2: 1.3435
S3: 1.3250	R3: 1.3475