CAD: negative pressure is in place 27/3/2023

Limited positive trades were shown by the movements of the Canadian dollar, trying to benefit from the support level of 1.3650 to retest the resistance level of the psychological barrier of 1.3800, maintaining the negative stability once again.

Technically, we are facing a bearish technical formation on the 4-hour time frame. Furthermore, the simple moving averages continue to pressure the price from above and the apparent negative features on the stochastic.

We tend to be cautiously negative, targeting 1.3695 as a first target and then 1.3650. The pair’s price movement should be closely monitored around this level because breaking it makes them prepare to touch 1.3590 and 1.3550, respectively.

From above, the return of trading stability above 1.3800 will immediately stop the suggested bearish scenario, and we will witness a session that tends to be positive, targeting 1.3845 & 1.3860.

Note: The risk level is high.

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: 1.3695	R1: 1.3790
S2: 1.3650	R2: 1.3845
S3: 1.3590	R3: 1.3890