CAD retests support 27/10/2023

Positive trading continued to control the movements of the Canadian dollar during the previous trading session, heading to visit the first official target to be achieved yesterday at the price of 1.3845, recording its highest level of 1.3845.

Technically, we are leaning towards positivity, relying on trading stability above the 1.3760 support level and the simple moving averages providing a positive incentive to support the continuation of the upward trend.

Hence, with the stability of trading above 1.3760, this encourages us to maintain our positive outlook, targeting 1.384, knowing that consolidation above the mentioned level is a motivating factor that enhances the chances of a rise towards 1.3880, an awaited official station.

Only from below did trading stability return again below the support level of 1.3760. This postpones the chances of a rise but does not cancel them, and we may witness a retest of 1.3700 and 1.3680 before another attempt to rise.

Note: The Stochastic indicator has begun to provide negative signals and we may witness fluctuation in the price before obtaining the desired direction.

Note: Today we are awaiting high-impact economic data in the US, the Core Personal Consumer Expenditure Price Index and we may witness high volatility.

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: 1.3760	R1: 1.3845
S2:  1.3700	R2: 1.3880
S3: 1.3670	R3: 1.3935