CAD starts on a positive note 16/8/2022

The Canadian dollar achieved noticeable gains at the beginning of this week’s trading, building on the strong support floor at 1.2760. The pair successfully confirmed the breach of the 1.2860 resistance level, recording yesterday’s highest at 1.2934.

Technically, we find the 50-day simple moving average that continues carrying the price from below, in addition to the clear positive signs on the 14-day momentum indicator on the short time frames.

Therefore, the bullish bias may be the most likely during today’s trading, targeting 1.2965, the first target. The pair’s price behavior should be monitored around this level due to its importance for the general trend on an intraday basis. Its breach is a catalyst that enhances the chances of visiting 1.3030, requiring daily trading to remain above 1.2760.

Note: The monthly Canadian CPI is due later in today’s session and has a huge impact, and we could see high volatility in the pair’s movements.

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: 1.2800	R1: 1.2965
S2: 1.2705	R2: 1.3030
S3: 1.2640	R3: 1.3130