CAD trading negatively ahead of BoC decisions 25/1/2023

Mixed trading dominated the movements of the Canadian dollar yesterday, within a marginal rise, as we mentioned yesterday, to realize the idea of retesting the strong resistance level at 1.3400, recording its highest level at 1.3413.

Technically, the pair failed to stabilize for a long time above 1.3400, and forced it to trade negatively within the bearish context published during the previous report, heading to touch the bearish target 1.3350 and hovering around it now, with a closer look at the 4-hour chart, we notice the negative pressure of the simple moving averages in addition to the Upside momentum waned.

Therefore, the bearish slope may be the most likely in the coming hours, provided that we witness a clear and strong break of the support level of 1.3330, and that extends the losses, paving the way to visit 1.3295 and 1.3250, respectively.

Note: Today, we are awaiting high-impact economic data issued by the Canadian economy; Canadian Interest Rate, BoC Press Conference, BoC Monetary Policy Report and BoC Interest Statement” and we may witness high volatility when the news is released.

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: 1.3330	R1: 1.3410
S2: 1.3295	R2: 1.3470
S3: 1.3250	R3: 1.3500