Divergence on the USD/CAD Currency Pair

Divergence on the USD/CAD Currency Pair

The current technical pattern signals a possible correction of the USD/CAD currency pair. A classic reversal formation has been formed in the trading instrument – the price and histogram MACD divergence (H4 timeframe). At the moment the USD/CAD quotes are testing the "mirror" resistance of 1.30800. We recommend you to pay attention to this situation.

If the price fixes above the 1.30800 mark, one should consider buying USD/CAD. The immediate goal for profit taking is the resistance level of 1.31350. In the medium term, the USD/CAD currency pair may reach the level of 1.31850-1.32200. Confirmations and entry points to the market should be looked for on lower timeframes. When tracking the position, we recommend using a trailing stop.

by JustForex, 2018.08.08

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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