CAD returns to the downside path 5/1/2023

The Canadian dollar failed to surpass the pivotal resistance level published in the previous report at 1.3.680, explaining that it represents the key to protecting the bearish trend, which forced it to trade with noticeable negativity to break the support level of the psychological barrier of 1.3600, heading to visit the first target 1.3545, recording its lowest level at 1.3470.

Technically, the bearish direction is still the most likely, with the pair’s success in confirming the breach of the 1.3600 support, accompanied by the negative pressure coming from the simple moving averages, which exert negative pressure on the price from above.

Breaking 1.3470 may open the door for more losses, extending to visit 1.3420, the first target, and then 1.3350, as long as trading remains stable below 1.3600.

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: 1.3420	R1: 1.3630
S2: 1.3340	R2: 1.3760
S3: 1.3210	R3: 1.3840