CAD: starting an upward rebound 19/1/2023

The Canadian dollar was able to touch our awaited target during the previous analysis at 1.3350, recording yesterday’s low at 1.3350, to start a bullish bounce as a result of touching the support represented in the target.

Technically, the pair formed a bullish rebound to the upside, and the current movements are witnessing stability above the previously breached resistance level of 1.3470. We find the simple moving averages returned to provide a positive motive on the 4-hour interval.

Therefore, we may witness an upward trend during the coming hours, targeting 1.3560 as the first target, considering that its breach is a catalyst that increases the chances of touching 1.3620 next station.

The stability of intraday trading above 1.3470 and, most importantly 1.3420 are essential conditions for activating the suggested bullish scenario.

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: 1.3395	R1: 1.3560
S2: 1.3280	R2: 1.3620
S3: 1.3220	R3: 1.3730