The USD/CAD Divergence Is Deepening which Means the Trend Will Reverse

Four highs during a divergence is a serious enough reason to think that the USD/CAD trend will reverse.

What is more, despite the slight move to the upside in the past five days (between 19th and 24th May) during which the pair formed said four new highs, there are multiple spinning top candlesticks on the daily time frame, which suggests that the trading volumes have been many times smaller than the ones at the beginning of the move to the upside on 3rd May.

All these factors are indications that a correction to the downside is about to begin.

On the chart you can see the important levels of support and resistance that formed while the pair climbed and I think the move to the downside will likely reach one of those levels. That said, in my opinion after the correction is over the pair will continue climbing at least until it reaches 1.3300, which is a strong resistance level visible on the weekly time frame.