CAD: negative pressure is in place 4/4/2023

As we expected, the Canadian dollar declined significantly within the negative outlook, touching the official target achieved yesterday at 1.3460, recording the lowest 1.3411.

Technically, the bearish trend is still the most dominant in the pair’s movements, and we find that the simple moving averages continue their negative pressure on the price from above to support the bearish daily curve for prices, stimulated by the negative momentum signs coming from the 14-day momentum indicator on the short-term frames.

Therefore, with daily trading remaining below 1.3500, the bearish scenario remains the most preferred, targeting 1.3380 as the first target, knowing that a decline below the mentioned level extends the pair’s losses as we wait for touching 1.3330 as the next stop.

Rising above 1.3505 can postpone the suggested scenario, and we are witnessing recovery attempts for the pair towards 1.3580.

Note: Stochastic is oversold, and we may witness some fluctuation until we get the official trend.

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: 1.3380	R1: 1.3505
S2: 1.3330	R2: 1.3580
S3: 1.3255	R3: 1.3630