The Canadian Dollar Witnessing Negative Signs

The Canadian dollar found a strong resistance near 1.2720, which forced it to trade negatively again, approaching a retest of the pivotal support level 1.2580, to record its lowest level at 1.2600.

Technically, and by looking at the 4-hour chart, we find the 50-day moving average starting to pressure the price from above, accompanied by negative signs that started to appear on the stochastic indicator.

Despite the technical factors that increase the possibility of a decline, we prefer to confirm the breach of 1.2580, which leads the pair to a bearish path to retest 1.2540 and 1.2500, respectively, before attempts to rise again.

From the top, we have crossed upwards and rose again above the previously broken support and turned to the 1.2660 resistance level, the 61.80% Fibonacci correction, which will immediately stop the expected bearish bias, and the pair will recover again, so we will be waiting for touching 1.2720, 50.0% correction.

S1: 1.2580	R1: 1.2685
S2: 1.2540	R2: 1.2745
S3: 1.2480	R3: 1.2775