CAD: negative pressure remains 11/10/2023

Negative trading continued to dominate the movements of the Canadian dollar during the previous trading session within the bearish context expected in the last analysis, recording its lowest level at 1.3570.

Technically, by looking at the 4-hour time frame chart, we find a negative intersection beginning to appear on the simple moving averages to return to pressuring the price from above, and this comes in conjunction with the clear negative signals on the Relative Strength Index.

From here, with daily trading remaining below the resistance level of 1.3650, the bearish scenario remains valid and effective, targeting 1.3545 as the first target, knowing that breaking it will extend the pair’s losses, as we wait to touch 1.3500.

Only from above is the return of trading stability above 1.3650, leading the pair to the upward path again, to retest 1.3720 and 1.3760.

Note: Today we are awaiting high-impact economic data issued by the American economy, Producer Price Index and Results of the Federal Reserve Committee Meeting, and we may witness high volatility when the news is released.

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: 1.3545	R1: 1.3650
S2:  1.3500	R2: 1.3720
S3: 1.3435	R3: 1.3770