Canadian Dollar: Extends Its Losses

The Canadian dollar retreated significantly during the last session’s trading within the expected negative outlook, in which we relied on confirming a break of 1.2380, heading directly to touch our waited target at 1.2320, recording the lowest at 1.2310.

Technically speaking, and with the Canadian dollar failing to maintain the trading level above 1.2380, in addition to the negative pressure from the 50-day moving average.

It increases the probability of continuing the decline towards 1.2275 and then 1.2240. Only from the top to move upwards and rise again above the previously broken support-into-resistance at 1.2380 resistance level, to postpone the chances of a reversal, and we may witness a slight bullish bias that targets a re-test of 1.2440.

Note: Stochastic is trading around oversold areas on short intervals.

S1: 1.2275	R1: 1.2380
S2: 1.2240	R2: 1.2445
S3: 1.2170	R3: 1.2485