Canadian Dollar: Needs Careful Consideration

The Canadian dollar was able to achieve the target of retesting the resistance published during the previous analysis at 1.2660, to hit its highest level at 1.2655.

Technically speaking, we find the pair declined significantly after touching the pivotal resistance represented by our previous goal of re-testing the 1.2460 support level.

With a closer look at the 60-minute chart, we find that the 50-day moving average constitutes an obstacle in front of the pair, and meets around 1.2555 and adds more strength to it, on the other hand, the signs of oversold began to appear on the stochastic indicator.

With the conflict of technical signals, we will stand on the fence and face one of the following scenarios: To resume the bullish trend, we need to see the price remain stable above 1.2520, which may push the price to retest 1.2555 and then 1.2610, respectively.

Activating short positions requires breaking 1.2450 in order for the way to be opened directly towards 1.2420, and then 1.2375.

S1: 1.2420	R1: 1.2615
S2: 1.2345	R2: 1.2730
S3: 1.2230	R3: 1.2810