CAD on a side track 26/1/2023

Limited sideways trading dominates the movements of the Canadian dollar, confined between 1.3350 and 1.3420.

Technically, we note the continuation of the 50-day simple moving average pressure on the price from above, with trading stabilizing below 1.3420, which supports negativity. On the other hand, we find the 14-day momentum indicator trying to gain more bullish momentum accompanied by trading stability above 1.3350.

With the conflicting technical signals, it is better to monitor the price behaviour of the pair to have one of the following scenarios:

Breaking 1.3350 signals a further decline towards 1.3300 & 1.3260.

Rising above 1.3420 may allow the pair to recover, with its target 1.3475, and may extend to 1.3500.

Note: Today, we are awaiting high-impact economic data issued by the US economy, The estimated reading of the quarterly GDP, and we may witness a high fluctuation.

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: 1.3350	R1: 1.3440
S2: 1.3300	R2: 1.3475
S3: 1.3260	R3: 1.3525