The Canadian Dollar: Building on Support 21/1/2022

The Canadian dollar is trying to build on the pivotal demand point published during all reports of the current week, located at the price of 1.2465/1.2460, which is trying to protect the pair from achieving more declines and forcing it to retest the 50-day moving average around 1.2540 resistance level.

Technically, there is a conflict in the technical signals between the attempts of the stochastic indicator to obtain positive signals that increase the possibility of an intraday rise as a result of stability above 1.2465 and between the negative pressure of the 50-day moving average that supports the bearish curve in prices.

We prefer to remain neutral for the fourth consecutive session until a more accurate signal becomes clear, waiting for one of the following scenarios:

Price stability above 1.2465 may support a bullish bias, as we need to witness a breach of the price above 1.2540, which is a catalyst that increases the probability of touching 1.2570 & 1.2610.

Breaking the low of 1.2465 will increase and accelerate the bearish trend and pave the way toward 1.2425 and 1.2380, respectively.

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

S1: 1.2465	R1: 1.2540
S2: 1.2425	R2: 1.2570
S3: 1.2380	R3: 1.2610