CAD settled below resistance 17/10/2023

Negative trading dominated the movements of the Canadian dollar yesterday within the bearish context expected during the previous report, approaching by a few points from the desired target of 1.3590, recording its lowest level of 1.3605.

Technically, we find the pair hovering around the 1.3660/1.3650 resistance level, unable to penetrate it yet, and we find the 50-day simple moving average starting to form negative pressure on the price from above, in addition to the negativity of the Stochastic indicator.

We may witness a bearish bias during today’s trading session, provided that we see the price consolidating below 1.3650, targeting 1.3590 as a first target, and breaking it may extend the losses as we wait for 1.3530 unless we witness any trading above 1.3660.

From above, if the price is breached above 1.3670, the pair returns to the upward path with an initial target of 1.3710 and later extends towards 1.3750 levels.

Note: Today, we are awaiting high-impact economic data in the US, retail sales index and the annual core consumer price index from Canada, and we may witness high volatility 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: 1.3590	R1: 1.3660
S2:  1.3525	R2: 1.3710
S3: 1.3470	R3: 1.3750