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The bullish tendency of the Canadian dollar stopped after it hit a strong resistance level around 1.3300, recording its highest level at 1.3290, to start the bearish trend controlling the pair’s movements again, and it is currently trading around its lowest level during today’s morning trading at 1.3200.
Technically, and with a closer look at the 240-minute chart, we find that the pair is starting to press on the support floor of the psychological barrier 1.3200, Fibonacci correction of 61.80%, and we find the simple moving averages exerting negative pressure on the price from above, stimulated by the clear negative signals on the RSI.
From here, with trading steadily below the resistance level of 1.3260, the bearish scenario remains valid and effective, knowing that the infiltration below 1.3200 facilitates the task required to visit 1.3170 as the first target, and then 1.3140 as a next target.
Activating the bearish scenario depends on trading remaining below 1.3260, noting that closing an hourly candlestick above it gives the pair an opportunity to retest 1.3300.
Note: Today we are waiting for high-impact economic data issued by the US economy, “US inflation data, consumer price index”
From Canada, we are waiting for “the Bank of Canada interest statement, Canadian interest rates and the Bank of Canada press conference” \
From England, we are waiting for “the speech of the Governor of the Bank of England” and the report issued by the International Energy Agency on oil stocks. We may witness high volatility at the time of issuance of the news.
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.
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