The Canadian Dollar Faces Temporary Negative Pressure

The technical outlook is unchanged, and the Canadian dollar did not witness any change, maintaining the temporary negative stability below the 1.2720 resistance level.

Technically, by looking at the 240-minute chart, we notice the price stability below 1.2720, the previously broken support and transformed into a resistance level represented by the 50.0% Fibonacci retracement as shown on the chart, in addition to the negative pressure coming from the 50-day moving average.

Therefore, the bearish tendency is likely today, targeting 1.2600. However, it should also be noted that activating the bearish scenario requires trading stability below 1.2720, 50.0% correction, and its breach can thwart the proposed scenario. The pair restores the official bullish path with an initial target of 1.2770, and it may extend later to visit 1.2830.

S1: 1.2600	R1: 1.2710
S2: 1.2540	R2: 1.2770
S3: 1.2445	R3: 1.2830