Canadian Dollar: Negative Pressure Continues

The bearish context is still dominating the Canadian dollar’s moves after it failed to stabilize above 1.2450/1.2460.

Technically, and by looking at the 60-minute chart, we find that the simple moving averages continue to pressure the price from the top and support the bearish price curve, and we find the RSI indicator is still maintaining the bearish momentum.

Consequently, the bearish scenario will remain valid and effective, knowing that a break of 1.2380 forces the Canadian dollar to enter a strong bearish wave, the initial target of which is around 1.2320.

From the top, surpassing the previously broken support level, which is now converted into resistance at 1.2450, delays the chances of a reversal, but does not cancel them, and we may witness a slight bullish bias targeting a re-test of 1.2510/1.2530 before retreating again.

Note: Stochastic is trading around oversold areas.

S1: 1.2360	R1: 1.2465
S2: 1.2320	R2: 1.2530
S3: 1.2260	R3: 1.2565