CAD re-tested support 23/9/2022

The Canadian dollar continues its attempts to maintain the bullish path after it retested the strong support floor located at 1.3400, forcing it to rebound to the upside once again within the expected bullish context.

From the technical analysis point of view, we tend to rise cautiously, relying on the stability of the intraday trade above 1.3450, accompanied by the positive motive of the simple moving averages that continue to support the bullish curve for prices, in addition to the RSI support for the bullish trend on the short time frames.

Therefore, the continuation of the rise is the most preferred scenario today, targeting 1.3510, knowing that its breach will motivate the price to get more rises, waiting for 1.3570 and 1.3610.

From below, the return of the daily stability below 1.3400 puts the price under negative pressure to retest 1.3300 before it attempts to rise again.

Note: Stochastic is around overbought areas, and we may witness price fluctuation before getting the official direction.

Note: We are awaiting the Federal Reserve’s speech later in today’s session and may witness high price volatility.

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: 1.3420	R1: 1.3550
S2: 1.3345	R2: 1.3610
S3: 1.3280	R3: 1.3685