CAD Retesting support 20/9/2022

The Canadian dollar achieved the first ascending target published during the latest analysis, at 1.3325, to record the highest level at 1.3344.

From the angle of technical analysis today, the Canadian dollar found a strong resistance level around the target level yesterday at 1.3325, which forced it to trade negatively again, to witness the stability of the current movement below 1.3300. With a careful look at the chart with a 4-hour frame, we find the stochastic indicator provides negative signals that support the possibility continue to descend.

Therefore, we aim to retest the 50-day moving average at 1.3200 before trying to rise again, and it should be noted that the decline below 1.3200 puts the pair under strong negative pressure; its next target is at 1.3160, noting that activating the suggested bearish scenario requires trading to remain below 1.3320.

Note: The Consumer Price Index is due to be released today in Canada, and it has a significant impact, and we may witness high fluctuations in prices.

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: 1.3200	R1: 1.3320
S2: 1.3160	R2: 1.3390
S3: 1.3085	R3: 1.3435