Noor Trends News, Technical Analysis, Educational Tools and Recommendations
After the Consumer Price Index data release, the Canadian dollar reversed the expected bearish trend during the previous report to rebound to the upside, recording its highest level during yesterday’s trading at 1.3362.
Technically, and by looking at the 4-hour chart, we find that the stochastic started entering the overbought stage, in addition to the stability of the price below the 50-day simple moving average, which constitutes an obstacle.
The expected bias is bearish but with caution, targeting a retest of 1.3260 and may extend to 1.3220 before attempting to rise again, knowing that consolidation above 1.3400 can completely thwart the suggested scenario and leading the pair to a temporary bullish path, targeting 1.3450 initially.
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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