TradeCityPro | USDCAD : Divergence Signals and Key Levels👋Welcome to TradeCityPro!
In this analysis, I will examine the USDCAD pair from the forex market. The analysis is conducted on the daily timeframe.
⏳ Daily Timeframe: Resistance and Potential Reversal
In the daily timeframe, we observe a range (box) between 1.32179 (support) and 1.38632 (resistance) that was recently broken. Currently, the price has reached the 1.40777 resistance level.
✨ A noticeable divergence is present in the RSI oscillator, with a trigger for this divergence being the break below the 55.94 level on the RSI. If this trigger is activated, the price could enter a correction phase.
📈 At the moment, after breaking out of the 1.38632 level and retesting it as support, the price is consolidating below the 1.40777 resistance. If this resistance is broken, the next target will be 1.43824.
🔽 However, if the RSI divergence is activated, a deeper correction may occur. In that case, the price could re-enter the range, with the first support at 1.36023 and the second support at the range's bottom, 1.32179.
💼 Considering the weakening momentum seen in the candles and the divergence signals, the likelihood of a correction is increasing. However, I personally prefer to wait for confirmation from the price to better identify future trends.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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