Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Canadian dollar (CAD) experienced a significant surge at the end of last week, breaking through the 1.3720 resistance level and reaching an intraday high of 1.3773. The current technical outlook suggests a continuation of the bullish trend.
Positive signals from the simple moving averages and the 14-day momentum indicator are driving the upward momentum. These indicators, combined with the pair’s recent breakout, suggest further gains are likely.
The initial targets for this bullish move are 1.3810 and 1.3845. A decisive break and consolidation above 1.3845 could accelerate the upward trend, potentially leading to a surge towards 1.3920.
However, traders should remain vigilant as a return of trading stability below 1.3690 could invalidate the bullish scenario. In this case, the pair could retest the pivotal support floor at 1.3630 before attempting to rise again.
Overall, the technical outlook for the CAD remains bullish, with the potential for significant gains in the near term. To capitalize on this bullish momentum, traders should closely monitor the pair’s price action and key support and resistance levels.
In conclusion, the CAD faces downward pressure in the short term, but a bullish reversal remains possible if the pair can break above the 1.3690 resistance level. Traders should exercise caution and closely monitor the market’s reaction to the upcoming U.S. economic data, which could significantly impact the pair’s trajectory.
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