Canadian Dollar: Looking For Signals

Trades tended to the positive within the expected bullish corrective tendency during the previous session, approaching by a few points from the required target 1.2100, to record the highest at 1.2093.

Technically, the pair found a strong resistance level represented by our target, which forced the pair to trade negatively again to retest the pivotal support 1.2030.

Looking at the chart, we found a contradiction between the pair’s base on the 1.2030 support and in general above 1.2000, and between the negative pressure of the simple moving averages, in addition to the stability of the intraday trading below 1.2270.

Therefore, we prefer to remain neutral for the moment in order to maintain the profitability rates that were achieved yesterday and to obtain a high-quality deal to be in front of one of the following scenarios:

Confirmation of breaking 1.2030 and most importantly 1.2000 leads the pair to enter a strong descending wave, its targets starting at 1.1970 and extending towards 1.1945.

Trading above 1.2070 is a motivating factor that enhances the chances of completing the bullish corrective slope towards 1.2100 and then 1.2130, respectively.

S1: 1.2030	R1: 1.2100
S2: 1.1970	R2: 1.2130
S3: 1.1945	R3: 1.2175