CAD: re-testing the resistance 22/6/2022

The Canadian dollar presented positive movements yesterday within a narrow ascending path, building on the support level of 1.2920, and it recorded the highest level at 1.2986.

Technically and carefully looking at the 240-minute chart, the pair is still stable below the resistance level of the psychological barrier of 1.3000. We find stochastic around the intraday overbought areas on the shorter time frames.

Therefore, as the move continues below 1.3000, the bearish bias is most likely during the day, targeting 1.2920, knowing that breaking the mentioned level will facilitate the main task of retesting 1.2885.

Trading above 1.3000 negates the suggested bearish scenario and leads the pair to recover with the first target of 1.3035, and it may extend later to visit 1.3070.

Note: Today, we are awaiting high-impact data from the Canadian economy, and we may witness high price volatility.

Note: The testimony of “Jerome Powell” Chairman of the Federal Reserve is due today, and we may witness high 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: 1.2920	R1: 1.3000
S2: 1.2885	R2: 1.3035
S3: 1.2830	R3: 1.3085