CAD: touches the descending goals 18/10/2022

As we expected, the Canadian dollar declined noticeably against the US dollar, surpassing the official target station during the previous technical report at 1.3715, recording its lowest level at 1.3657.

Technically and carefully considering the 4-hour chart, we find the pair failed to maintain the broken support floor 1.3710, and we find the simple moving averages continuing their negative pressure on the price from above.

Therefore, we maintain our negative outlook, targeting 1.3590, an awaited target that may extend later towards 1.3520, knowing that activating the suggested scenario depends on the stability of daily trading below 1.3820.

Consolidating above 1.3820 will postpone the chances of a decline but not cancel them, and we may witness a temporary recovery for the pair within the official bullish track at 1.3880.

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: 1.3590	R1: 1.3820
S2: 1.3515	R2: 1.3960
S3: 1.3370	R3: 1.4040