CAD: Negative pressure remains 27/12/2022

Negative trades continue to control the movements of the Canadian dollar due to the collision with the pivotal resistance level at 1.3680, which forced the pair to move negatively towards the last expected target at 1.3570, recording its lowest level at 1.3550.

Technically, our trading tends to be negative, relying on the continuation of the negative pressure coming from the 50-day simple moving average, in addition to the stability of the relative strength index below the 50-center line.

Therefore, we target 1.3500/1.3520 as an initial target, knowing that the decline below 1.3500 increases and accelerates the strength of the bearish trend, opening the door for 1.3470.

Activating the suggested bearish scenario requires stability below 1.3630, and breaching it would lead the pair to retest the pivotal resistance 1.3680, before starting the decline again.

Note: In light of the absence of economic indicators during the holiday season, the decline in liquidity ratios, and thin trading volumes, we may witness random, irregular movements.

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: 1.3520	R1: 1.3630
S2: 1.3470	R2: 1.3680
S3: 1.3415	R3: 1.3740