Canadian Dollar: Continues to Decline

The Canadian dollar continues its bearish path, as we expected, heading to visit our desired target at 1.2100, to hit its lowest level during the previous trading session at 1.2116.

Technically speaking, the pair broke the level of 1.2170, which has now been converted into a resistance level that supports the continuation of the decline. On the other hand, the stochastic indicator on medium time frames is trading clearly around oversold areas.

With the conflict of technical signals, we will stand on the fence in order to obtain a signal indicating the next direction more precisely in order to obtain a high-quality deal, so that we will face one of the following scenarios:

Confirmation of a break of 1.2100/1.2090 with a clear breakout confirmation candle extends the pair’s losses to visit 1.2065, and losses may extend later towards 1.2010.

If the pair manages to build a base on the support level of the psychological barrier of 1.2100, we may witness attempts to re-test the previously broken support 1.2170/1.2175.

S1: 1.2090	R1: 1.2170
S2: 1.2065	R2: 1.2220
S3: 1.2010	R3: 1.2250