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Positive trading prevailed in the movements of the Canadian Dollar pair as it followed the expected upward trajectory, reaching the official target stations at 1.3830 and 1.3860, with its highest level recorded at 1.3855.
From a technical analysis perspective, the pair encountered resistance at the 1.3850 level, which curbed the upward momentum. Upon closer examination of the 4-hour chart, early signs of negativity are emerging on the Stochastic indicator.
There’s a possibility of a bearish bias aiming to retest 1.3750 before potential attempts at another upward move. It’s important to note that this bearish bias doesn’t contradict the overall upward trend, and the official targets remain around 1.3900 once the 1.3850 level is breached.
As a reminder, the return of trading stability below 1.3750 has the potential to thwart the proposed bullish scenario, leading the pair down a path with targets starting at 1.3680 before a potential recovery.
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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