CAD Retest Support 4/11/2022

A weak bullish trend, as we mentioned, dominated the Canadian dollar’s movements yesterday within the targeted bullish path, surpassing the required target of 1.3760 and recording its highest level around the resistance of the psychological barrier of 1.3800.

Technically, the pair failed to stabilize for a long time above 1.3800 and started today’s session with a bearish bias, resulting from the clear negative signs on Stochastic that is gradually losing the bullish momentum.

We may witness a bearish tendency in the coming hours to retest 1.3640 and 1.3600 before attempts to rise again, knowing that the overshoot and rise again above 1.3770 leads the pair to recover temporarily with the target of 1.3850.

Note: Employment data, Unemployment rate and average wages are due today in the USA and they have a high impact, and we may witness price fluctuations 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: 1.3640	R1: 1.3770
S2: 1.3600	R2: 1.3850
S3: 1.3520	R3: 1.3895