The Canadian Dollar: a Conflict in Technical Signals 18/1/2022

The Canadian dollar witnessed mixed movements during last week’s trading after hitting the pivotal resistance level at 1.2610.

Technically there is a conflict in the technical signals between the RSI attempts to obtain positive signals that increase the possibility of a rise, the attempts of Stochastic to get positive signs, and between the negative pressure of the 50-day moving average that supports the bearish price curve.

We prefer to remain neutral until a signal becomes apparent, waiting for one of the following scenarios:

Price stability above 1.2480 and, most importantly, 1.2465 may support a bullish bias. Next, however, we need to witness a breach of the price above 1.2530, a catalyst that increases the possibility of touching 1.2560 1.2610.

Breaking the low of 1.2465 will accelerate the bearish trend, leading to 1.2425 and 1.2380, respectively.

Note: CFD trading involves risks; all scenarios may occur.

S1: 1.2465	R1: 1.2560
S2: 1.2425	R2: 1.2610
S3: 1.2380	R3: 1.2640