CAD retest support 29/8/2023

Positive trading dominated the Canadian dollar’s movements, and it is still stable below the resistance of the psychological barrier of 1.3600, unable to consolidate above it until now.

Technically, today, 1.3600 level started to form a strong resistance that pressures the pair, accompanied by the clear negative signs on stochastic and stimulated by the decline in momentum over the short-term intervals.

The daily trend is favorable to the upside, but there is a possibility of a bearish bias in the coming hours, aiming to retest 1.3560 & 1.3540 before attempting to rise again.

It should be noted that the bearish bias does not contradict the bullish trend, whose official targets are around 1.363 & 1.3670 once the price consolidates above 1.3600 resistance.

Note: Today, we await high-impact economic data issued by the US economy, “Composite Home Prices” and “Consumer Confidence.”

“Vacancies and labor turnover” and we may witness a high price fluctuation 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: 1.3560	R1: 1.3630
S2: 1.3530	R2: 1.3670
S3: 1.3490	R3: 1.3705