The Canadian Dollar: Technical Conditions Unchanged 19/1/2022

The technical outlook is unchanged and the movements of the US dollar against the Canadian dollar did not change significantly, maintaining the same technical conditions of the previous session.

Technically, there is a conflict in the technical signals between the RSI attempts to obtain positive signals that increase the possibility of a rise, in addition to the attempts of Stochastic to get rid of the current negativity and the negative pressure of the 50-day moving average that supports the bearish price curve.

We prefer to remain neutral until a more accurate signal becomes apparent, waiting for one of the following scenarios:

Price stability above 1.2480 and, most importantly, 1.2465 may support a bullish bias. Next, however, we need to witness a breach of the price above 1.2530, a catalyst that increases the possibility of touching 1.2560 1.2610.

Breaking the low of 1.2465 will increase the bearish trend, opening the door for the pair towards 1.2425 and 1.2380, respectively.

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

S1: 1.2465	R1: 1.2560
S2: 1.2425	R2: 1.2610
S3: 1.2380	R3: 1.2640