The Canadian Dollar: Retest Support 31/1/2022

Positive trading dominated the movements of the Canadian dollar within the expected bullish path mentioned in the previous analysis, exceeding the target that is required to be achieved at 1.2765, recording the highest level at 1.2796.

Technically, and by looking at the 4-hour chart, we notice positive attempts that started appearing on stochastic to get more bullish momentum, in addition to stabilizing intraday trading above the psychological support level of 1.2700.

We tend to resume the upside, but with caution, targeting 1.2780, considering that the breach of the mentioned level may enhance the pair’s gains towards 1.2830.

To remind that trading below 1.2765, and most importantly 1.2665, postpones the chances of rising but does not cancel them, and we may witness a downward bulge, to retest 1.2615 before attempts to rise again.

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

S1: 1.2700	R1: 1.2780
S2: 1.2665	R2: 1.2830
S3: 1.2615	R3: 1.2865