CAD starts attacking upwards 31/1/2023

The Canadian dollar reversed the daily bearish trend expected during the previous analysis after it built on the support floor of 1.3300, previously explained as a support level, to return to the bullish rebound, and now hovering around its highest level during the session 1.3410.

Technically, the pair was able to breach 1.3350 and, most importantly, 1.3370, explaining that if the price consolidates above the mentioned levels, we may witness a bullish tendency that aims to retest 1.3400, and with careful consideration on the 4-hour chart, we find that the simple moving averages returned to carry the price from above, and this comes in conjunction With the positive signals coming from the RSI.

From here, and with daily trading remaining above 1.3340, and in general, above 1.3300, there is a possibility of a bullish bias, with its first target at 1.3450, considering that confirming the breach of 1.3450 is a catalyst that enhances the chances of touching 1.3490.

Note: Today we are awaiting high-impact data from the US economy, “Consumer Confidence Index,” and we may witness high volatility at the time of the news release.

S1: 1.3340	R1: 1.3450
S2: 1.3260	R2: 1.3490
S3: 1.3220	R3: 1.3560