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The negative pressure returned to control the movements of the Canadian dollar after it found a strong resistance level at 1.2855, which forced it to trade negatively to retest 1.2790.
Technically, taking a closer look at the 4-hour chart, we are inclined to the negativity based on stochastic losing the bullish momentum gradually, in addition to the clear bearish momentum signs on the short time frames.
From here, and steadily, daily trading is below 1.2850, the bearish scenario remains the most likely today, targeting 1.2780, a first target, and breaking it will extend negative pressure on the price, so we will be waiting for 1.2750, a waiting station that may extend later towards 1.2710.
The return of trading stability above the resistance level of 1.2850 postpones the decline. Still, it does not cancel it, and we may witness a temporary bullish bias targeting 1.2885 before starting the decline again.
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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