Noor Trends News, Technical Analysis, Educational Tools and Recommendations
During the previous trading session, the Canadian dollar declined noticeably to stop the expected bullish bounce mentioned in the last analysis. The resistance levels of 1.2675 succeeded in limiting the bullish rebound, which forced the pair to retest 1.2560.
Technically, with the price stability below the 1.2590 level, 38.20% Fibonacci correction, as shown on the 4-hour chart, and the 14-day momentum indicator losing its bullish momentum.
Therefore, there may be a possibility of a bearish bias, provided that 1.2550 is confirmed to retest 1.2520, considering that trading below 1.2520 extends the pair’s losses towards areas of 1.2475, 50.0% correction before attempts to rise again.
From the top, a break-up and a rise again above 1.2640 might be a motivating factor that enhances the chances of resuming the bullish path and open the door toward a 1.2720 – 23.60% correction.
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: 1.2520 | R1: 1.2640 |
| S2: 1.2475 | R2: 1.2720 |
| S3: 1.2400 | R3: 1.2760 |
