Canadian extends losses 3/1/2023

The Canadian dollar declined significantly at the end of last week’s trading as part of a gradual decline towards the target achieved during the previous session, 1.3500, to record its lowest level at 1.3524.

Technically, and by looking closely at the 4-hour chart, we find that the simple moving averages continue the negative pressure on the price from above, which comes in conjunction with the decline in momentum over the short-term intervals.

The daily trend tends to be down, targeting 1.3500 as the first target, considering that breaking it would extend the pair’s losses, opening the door to visit 1.345 next station, whose targets might extend later towards 1.3410.

From above, crossing to the upside and consolidating above the resistance level of the psychological barrier 1.3600 will immediately stop the suggested scenario and lead the pair to restore the bullish path to retest 1.3660 & 1.3700 temporarily.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.3500	R1: 1.3600
S2: 1.3465	R2: 1.3660
S3: 1.3410	R3: 1.3700