Canadian Dollar is Waiting For a Signals 7/1/2022

The Canadian dollar declined after it hit the resistance of the psychological barrier 1.2800 and failed to stabilize for a long time above it, return to trading with a clear negative and retest the support level of the psychological barrier 1.2700.

Technically, by carefully looking at the 4-hour chart, we find the stochastic is now trading around the oversold areas clearly, which increases the possibility of the bullish bias returning. On the other hand, the stability of trading below 1.2770 accompanied by the negative pressure of the 50-day moving average supports the idea of continuing backtracking. With the conflicting technical signals, we prefer to remain neutral until the daily trend becomes more apparent, to be waiting for one of the following pending orders:

Breaching the 1.2700 support level may extend the pair’s losses, opening the door to 1.2670 & 1.2630.

The breach of the 1.2770 resistance level enhances the possibility of the bullish bias returning, with initial targets starting at 1.2800 and 1.2850, respectively.

Note: Today we are waiting for Canadian jobs data and unemployment rates and may cause volatility.

Note: all scenarios are on the table.

S1: 1.2670	R1: 1.2770
S2: 1.2635	R2: 1.2850
S3: 1.2560	R3: 1.2885