Divergence on USD/CAD

Divergence on USD/CAD

The current technical pattern signals a possible correction of the USD/CAD currency pair after a significant drop. A classic reversal formation, the divergence of price and the MACD histogram (H4 timeframe), has been formed in the trading instrument. At the moment, USD/CAD quotes are stable. The 1.3675 level is a local resistance. We recommend paying attention to this situation.

If the price fixes above 1.3675, the USD/CAD currency pair is expected to grow. The nearest goal for profit-taking is 1.3810-1.3880. The movement is tending to 1.4000-1.4040. Confirmations and market entry points should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.

by JustForex 2020.06.15

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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