CAD bounce back 7/4/2022

The Canadian dollar managed to rebound upwards during the previous session, touching the official target at 1.2560, to record the highest level at 1.2560.

Technically, and carefully looking at the 4-hour chart, we notice that the pair is stable above 1.2500, accompanied by the positive motive for the 50-day moving average, which returned to hold the price from below, accompanied by positive signals coming from the 14-day momentum indicator.

Therefore, we maintain our positive outlook, and there is a possibility to continue the bullish rebound, knowing that trading above 1.2560 is a catalyst that enhances the chances of rising to visit 1.2610, a next target that may extend towards 1.2650 as long as the pair is intraday stable above 1.2490.

Trading stability below 1.2460, 50.0% correction, postpone the idea of ​​the bullish bounce, and we witness a retest of 1.2400 before attempts to rise again.

Note: The risk level is high.

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: 1.2440	R1: 1.2560
S2: 1.2370	R2: 1.2610
S3: 1.2340	R3: 1.2660