Canadian Dollar May Extends Losses

The Canadian dollar failed to hold above 1.2800 for several sessions in a row, as the current moves see a re-test of the 1.2700 psychological barrier support.

From the angle of technical analysis, we find that the simple moving averages began to pressure the price from the top, and we find that the pair began to gain bearish momentum. Despite the technical factors that support the possibility of resuming the downside, we fail to confirm the breach of the pivotal support 1.2680, and from here the pair is forced to enter a downside trend, its initial target is around 1.2665, while its official target is 1.2620.

Overcoming to the upside and rising again above 1.2750 negates the bearish scenario, and the pair regains its recovery again and regains the corrective bullish path with the target of 1.2775 and then 1.2830, respectively.

Note: The speech of US President-elect “Joe Biden” is due today and that may have a significant impact on the market movement.

S1: 1.2690	R1: 1.2750
S2: 1.2665	R2: 1.2790
S3: 1.2630	R3: 1.2830