Canadian Dollar Touches Targets

The Canadian dollar retreated significantly during the previous session within the expected bearish trend, in which we depended on the confirmation of the break of the 1.2600 support level, heading for touching the first target of 1.2550 and approaching a few points from the second target of 1.2500, to reach its lowest level at 1.2520.

Technically speaking, the SMA continues its negative pressure on the price, in addition to the breach of the support level of 1.2600, which has now been converted into a resistance level. Consequently, the bearish scenario will remain valid and effective, knowing that a break of 1.2500 extends the losses of the pair so that the way will be open directly towards 1.2460, and then 1.2420 for a next official stop.

Note: There are signs of a positive cross that started appearing on the stochastic indicator that may push the pair to trade with limited positivity during the next few hours, to re-test 1.2570 and 1.2610 before resuming the decline again.

S1: 1.2500	R1: 1.2610
S2: 1.2460	R2: 1.2715
S3: 1.2400	R3: 1.2750