CAD: negativity remains 20/6/2023

Trading tended to be negative and dominated the Canadian dollar’s movements, with the beginning of trading this week recording its lowest level yesterday at 1.3180.

Technically, the current movements of the pair witness a limited bullish bias, benefiting from the attempt to stabilize above the support level of 1.3180, and upon closer look, we find the 50-day simple moving average still constitutes an obstacle in front of the pair, accompanied by the clear negative signs on the stochastic indicator, which started to lose bullish momentum.

We tend to be negative, but with caution, relying on trading remaining below the strong resistance level 1.3260/1.3250, waiting to touch 1.3180, knowing that decline below the mentioned level facilitates the task required to visit the official target 1.3130, knowing that crossing upwards and rising above 1.3260 can thwart the expected bearish scenario. The pair is recovering temporarily, targeting 1.3310 and 1.3350, respectively.

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: 1.3180	R1: 1.3250
S2: 1.3130	R2: 1.3310
S3: 1.3075	R3: 1.3350