Canadian Dollar Breaks Support

The Canadian dollar declined, cancelling the bullish correction look, as we expected, in which we relied on trading stability above the support floor of 1.2680 touching the stop-loss order at the aforementioned level, as a reminder that we also indicated that any trading below 1.2680 will stop the required upward correction and lead the pair to enter a strong bearish wave whose initial target is 1.2610 It recorded its lowest price at 1.2630, compensating for the long position losses.

Technically speaking, the stability of trading below the previously broken support, converted to the resistance level of 1.2680, supports the continuation of the decline, in addition to the continuation of negative pressure from the 50-day moving average, which meets around 1.2710 and adds more strength to it.

We tend to be negative as a condition, but on condition that we witness a clear and strong break of the support level of 1.2610, opening the way to achieving further decline with the target of 1.2575, and then 1.2540 a next stop.

Jumping to the upside and rising again above 1.2710 negates the resumption of the decline, and the pair regains its recovery again and enters a minor upward correction with the target of 1.2800.

Note: Stochastic is trading around overbought areas.

S1: 1.2610	R1: 1.2700
S2: 1.2575	R2: 1.2745
S3: 1.2535	R3: 1.2780