In this comprehensive guide, we delve deep into the CADPLN forecast, examining the price action of the pair on both weekly and daily charts. We will also share our thoughts on the CADPLN analysis.
The CADPLN has been on a declining trend since July 2022, moving within a bearish channel. The pair rose to a high of 3.26 in September. However, later that week, bearish pressures mounted on the currency pair, leading the CAD PLN to form a long-wick candlestick pattern on the weekly chart. This coincided with the stochastic oscillator entering the overbought zone – a strong bearish signal for the CADPLN. The result of this bearish pressure was the pair closing below the previously broken 3.212 support from March 2023.
Zooming into the CADPLN daily chart provides us with more details. The bearish channel is more evident in the daily chart. The pair successfully targeted the 3.136 support level. Currently, the CADPLN is undergoing a correction after the recent slump in price, with the stochastic oscillator being in the oversold area.
CADPLN: A Technical Analysis Outlook
The outlook of the CADPLN trend is bearish. Based on data from technical indicators on both daily and weekly charts, it’s probable that the currency pair will gain some value before turning bearish again. With the price holding above 1.3136, bulls may target the 3.176 pivot point. Please note that as long as the pair trades below this pivot point, bearish sentiment remains strong. In this scenario, a rise to the pivot point followed by a decline to 3.077 is likely.
However, if bulls can close above this pivot point, their next target will be around September’s high of 3.2798.
In conclusion, our CADPLN analysis suggests that traders should keep an eye on these key levels and indicators for potential trading opportunities.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.