The Canadian Dollar: Struggles to Rise 1/2/2022

The technical outlook is unchanged, and the pair’s movements did not change significantly, trying to maintain the bullish bias, benefiting from stability above the 1.2665 support level.

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 the price above the 50-day moving average.

We tend to resume the rise, but with caution towards 1.2730, considering that the breach of the mentioned level may enhance the pair’s gains towards 1.2820 and 1.2860.

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

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.2665	R1: 1.2760
S2: 1.2625	R2: 1.2820
S3: 1.2570	R3: 1.2860