CAD waiting for the pending orders to be activated 17/8/2022

Mixed trading dominated the movements of the Canadian dollar after the consumer price index data, to trade negatively again to around 1.2930 resistance for the second consecutive session, unable to penetrate it.

Technically, and by looking at the 4-hour chart, we notice the stability of trading again below the 1.2870 level, and this increases the possibility that we will witness a bearish corrective path to visit 1.2810 and 1.2770, and on the other hand, the 50-day simple moving average attempts to push the price higher, no still effective.

With this technical inconsistency, we prefer to monitor the price behaviour to be waiting for the following:

If the price remains below 1.2840, it increases the possibility of a bearish correction, targeting 1.2815, and it may extend later to retest the strong support 1.2770.

The breach of the extended resistance 1.2920/1.2900 leads the pair to recover with an initial target of 1.2970.

Note: UK inflation data, US retail sales data, and the results of the Federal Reserve meeting are due today, which are high-impact data; we may see high volatility in prices and all scenarios are on the table.

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: 1.2815	R1: 1.2920
S2: 1.2770	R2: 1.2970
S3: 1.2720	R3: 1.3020