The Canadian Breaks The Support

The strong resistance level at 1.2400 managed to cap the bullish bias yesterday, which forced the pair to trade negatively again, settling around its lowest level during the morning session, 1.2340.

Technically, and with trading below the previously broken support-into-resistance at 1.2390, in addition to the continuation of the negative pressure coming from the simple moving averages that continue to form a pressure on the price.

This encourages us to maintain our negative expectation towards 1.2310. However, bearing in mind that the breach up and above 1.2420 delays the chances of a decline but does not cancel them, we may witness a retest of 1.2485 before retracing.

S1: 1.2310	R1: 1.2390
S2: 1.2285	R2: 1.2435
S3: 1.2220	R3: 1.2460