CAD under negative pressure 8/11/2022

The Canadian dollar declined noticeably yesterday within the expected bearish context, only to reach its lowest level during the last session’s trading around 1.3465.

Technically, we are inclined in our trading to the negativity, relying on the continuation of the effect of the bearish technical structure shown on the 4-hour chart, in addition to the continuation of the negative pressure coming from the simple moving averages.

Therefore, the bearish scenario may remain valid and effective, targeting 1.3470, knowing that breaking the mentioned level will extend the pair’s losses, paving the way to visit 1.3420, a targeted official station, unless we witness stability above 1.3570.

Note: the US Congress “House of Representatives” elections is due today and have a high impact and we may witness clear fluctuations in prices at the time the results are 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: 1.3470	R1: 1.3560
S2: 1.3420	R2: 1.3605
S3: 1.3370	R3: 1.3650