CAD tries to maintain positive stability 6/9/2022

Positive movements dominated the Canadian dollar during the previous trading session, recording its highest level yesterday around the strong resistance level located at 1.3170, which succeeded in limiting the bullish bias.

Technically, and by looking at the 4-hour chart, we find the 50-day simple moving average that is still trying to push the price to the upside, accompanied by the continuation of stochastic attempts to provide positive signals.

Therefore, there may be a possibility to continue rising, provided the price stabilizes temporarily above 1.3130, targeting 1.3170, taking into account that the confirmation of the breach of the mentioned level extends the pair’s gains, so we will be waiting for 1.3205 next target unless we witness a trading base below 1.3050.

A break below 1.3050 puts the pair under temporary negative pressure that aims to retest 1.3000 before attempts to rise again.

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: 1.3085	R1: 1.3160
S2: 1.3050	R2: 1.3205
S3: 1.3000	R3: 1.3240