CAD presses support 29/9/2023

The Canadian dollar found strong resistance around the psychological barrier of 1.3500, which began to put negative pressure on the pair and is currently trading near the strong support level of 1.3470.

From a technical analysis standpoint, the pair is hovering around the 1.3470 support level and is starting to pressure the aforementioned level. Upon closer inspection of the 4-hour chart, we find the Stochastic indicator providing negative signals, stimulated by declining momentum.

We tend toward negativity, knowing that confirming a break of 1.3470 puts the pair under negative pressure to retest 1.3440 and then 1.3400, respectively.

Only from the top will the jump rise and the price consolidate above 1.3530/1.3520, leading the pair to the upward path again as we wait for the price to head towards 1.3570 and 1.3600.

Note: Today we are awaiting high-impact economic data issued by the American economy, the Core Personal Consumption Expenditure Index, and we may witness high fluctuation in prices at the time of the news release.

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: 1.3470	R1: 1.3535
S2:  1.3440	R2: 1.3570
S3: 1.3400	R3: 1.3600