The Canadian Dollar Facing Retest Scenario

The movements of the Canadian dollar witnessed a bearish tendency during the trading session last Friday, after several consecutive sessions of rising to hit the 1.2500 resistance level.

Technically, despite the bearish bias, we believe that it is still limited, as we find the price is still stable above the previously breached resistance level and now turned to the 1.2410 support level represented by the 61.80% Fibonacci correction as shown on the chart.

Therefore, we maintain our positive outlook, targeting 1.2475/1.2480, a first target, and it may extend to visit 1.2520. It should be noted that the price stability below 1.2710 may force the pair to retest 1.2345, 50.0% correction, before attempts to rise again.

Note: Stochastic is trading negatively.

S1: 1.2410	R1: 1.2480
S2: 1.2365	R2: 1.2520
S3: 1.2320	R3: 1.2545