CAD retests support 6/10/2023

The Canadian dollar reached the first target expected to be achieved during the previous trading session, at 1.3770, recording its highest level of 1.3785.

Technically, and with a closer look at the 4-hour time frame chart, we find that the resistance level of 1.3785 formed a negative pressure factor that forced the pair to approach retesting the strong support floor of 1.3680, with the moving averages continuing to provide a positive incentive in addition to the attempts of the Stochastic indicator to get rid of negativity.

From here, with intraday trading remaining above 1.3670, the upward bias is the most likely during the current trading session, targeting 1.3770 as the first target, and breaching it increases and accelerates the strength of the upward trend, opening the way directly to visit 1.3800.

Trading stability below 1.3670, leading the pair to the downward path, to retest 1.3640 and 1.3610.

Note: Today, we are awaiting high-impact economic data issued by the American economy, “US jobs data (NFP), average wages and unemployment rates, and we may witness high price fluctuation when the news is released.

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: 1.3675	R1: 1.3770
S2:  1.3640	R2: 1.3820
S3: 1.3590	R3: 1.3860