CAD waiting to continue the decline 2/8/2022

The movements of the Canadian dollar witnessed attempts to recover at the beginning of the first trading sessions of this week. However, it is still limited to facing a strong resistance level around 1.2880/1.2870.

Technically, we tend to the negativity, relying on the support of the 50-day simple moving average for the bearish bias, which is exerting its negative pressure on the price, in addition to the regular movement within the descending minor channel as shown on the 4-hour chart.

Therefore, we maintain our negative outlook and await confirmation of breaking the 1.2830 support, which facilitates the task to visit 1.2780, the first target, and then 1.2730.

A rise above 1.2885 will cancel the suggested bearish scenario, and we are witnessing a temporary recovery for the pair, targeting 1.2925 and 1.2955 initially.

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: 1.2780	R1: 1.2885
S2: 1.2730	R2: 1.2925
S3: 1.2695	R3: 1.2980