CAD trading cautious, waiting for a stronger signal 9/2/2023

The Canadian dollar successfully retested the strong support at 1.3350, which helped it achieve a bullish bounce, to hover now around its highest level during the morning trading of the current session at 1.3435.

Technically, the simple moving averages support the possibility of a bullish bias, supported by the clear positive signs on the RSI on the 60-minute time frame, but the clear negativity on the stochastic indicator makes us tend to be cautious.

We prefer to monitor the price behaviour of the pair to obtain a high-quality deal, to be in front of one of the following scenarios:

To continue a movement within the official bullish path, we need to witness stability above 1.3375, and we need to witness a clear and strong breach of the resistance level of 1.3475opening the door towards 1.3510 & 1.3560.

Stability below 1.3375 constitutes a negative pressure factor on the pair’s exchange rate and is considered a negative sign for the price to head towards 1.3310 before determining the next price destination.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

S1: 1.3375	R1: 1.3475
S2: 1.3310	R2: 1.3510
S3: 1.3270	R3: 1.3575