CAD tries to bounce back 6/4/2022

The Canadian dollar declined noticeably during the last trading session within the expected bearish context, explaining that the breach below the 1.2470 support floor increases the negative pressure on the pair to touch 1.2370, recording a low at 1.2400.

Technically and by looking at the 4-hour chart, we notice the pair’s rebound to the upside, building on the psychological support of 1.2400 and clear signs of positive crossover signals on the stochastic indicator.

Therefore, there may be a possibility of a bullish bias in the coming hours, targeting a retest of 1.2525, knowing that its breach may enhance the intraday gains to visit 1.2560 as long as the price is stable above 1.2430.

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: 1.2430	R1: 1.2525
S2: 1.2370	R2: 1.2560
S3: 1.2340	R3: 1.2620