CAD Testing Support

The Canadian dollar opened its daily trading within the expected downside direction, trying to break the solid support floor located at 1.2700, unable to break it yet.

Technically speaking, and despite the current negative trades, we will expand the risk appetite, and prefer long positions from the current price, depending on the pair entering the oversold phase as indicated by the stochastic indicator.

The first target is expected at 1.2775, and a breach thereof increases the possibility of a re-test of 1.2810. To remind you that the return of trading stability again below the support floor of 1.2700 will immediately stop any momentary attempts to rise and lead the pair to the official bearish path, with official targets around 1.2650 and later extend towards 1.2550, an official stop after the current downside wave.

S1: 1.2700	R1: 1.2775
S2: 1.2650	R2: 1.2815
S3: 1.2605	R3: 1.2860