Canadian Dollar: Bullish Trend is The Most Preferred

The Canadian dollar continues to achieve gains within the expected bullish path, after it managed to establish a solid support floor around 1.2590, touching our target at the end of last week’s trading at 1.2770, recording a high around the resistance of the psychological barrier 1.2800.

Technically, the bullish scenario is still valid and effective, based on the positive motive of the 50-day moving average, which meets around the 1.2690 support level, in addition to the pair’s success in stabilizing above the breached resistance level 1.2730, 23.0% correction.

We believe that chances of recording more gains are still available to target 1.2845/1.2840, an initial station, with gains extending during the session towards 1.2900 initially.

The suggested scenario depends on the stability of trading above 1.2690, and breaking it postpones the upside. Still, it does not cancel it because the trend, in general, is bullish unless we witness any trading below 1.2595, 38.20% correction.

S1: 1.2690	R1: 1.2845
S2: 1.2595	R2: 1.2900
S3: 1.2535	R3: 1.3000