The Canadian Dollar is Waiting For Pending Orders 4/1/2022

The Canadian dollar benefited from building a base on the strong support level located at 1.2630, which forced the pair to trade positively during the last trading session, to retest the previously broken support level of 1.2770.

From the angle of technical analysis today, and with careful consideration on the 4-hour chart, we find the price is stable above 1.2700, which supports the possibility of resuming the ascent that started yesterday. On the other hand, the stochastic indicator started to provide negative signals.

With technical signals conflicting, we prefer to remain neutral to obtain more accurate signals, waiting for one of the following scenarios:

Activating the buying positions depends on the stability of trading above 1.2700. We need to witness a return to stability above 1.2770. From here, we target 1.2800 as an initial station; its gains extend later to visit 1.2865.

Activating the short positions depends on the infiltration below the strong demand level of 1.2700; we are witnessing a negative trading session, whose initial target is to retest 1.2640 before attempting to rise again.

S1: 1.2645	R1: 1.2800
S2: 1.2565	R2: 1.2865
S3: 1.2500	R3: 1.2945