CAD Surges as Anticipated 8/11/2023

The Canadian dollar displayed a strong performance, aligning with our previous analysis, by reaching the second target set at 1.3780 and peaking at 1.3782.

Examining the technical analysis today, we observe a positive trajectory in our trading strategy, grounded in the stability above 1.3710, reinforced by the encouraging signals from the Relative Strength Index, which remains above the 50 midline.

Hence, the prevailing sentiment points towards an upward trend throughout the day, contingent on the confirmation of breaching the 1.3800 level. A successful breach at this point can act as a catalyst, potentially amplifying the pair’s gains and opening the door for further advances towards 1.3845 and 1.3880.

However, it is imperative to note that if stability below 1.3710 occurs, the proposed bullish scenario may be thwarted, prompting the pair to resume the downward trajectory with initial targets set at 1.3650, further extending towards 1.3610.

Please be aware that we are closely monitoring high-impact events today, including press talks from “Federal Reserve Governor Jerome Powell” and “BoE Governor,” which may lead to significant price fluctuations. Stay vigilant.

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: 1.3710	R1: 1.3805
S2:  1.3650	R2: 1.3845
S3: 1.3610	R3: 1.3900