USD/CAD reached a strong support zone on the weekly time frame around 1.2980 – 1.3000.
The pair has tested those levels at the end of January 2017 during its year-long consolidation and moved north again.
It is possible for the pair to hesitate for a while about which direction to pick. For the past forty hours it has been developing a very tight consolidation between 1.3000 and 1.2950 and it is obvious that neither investors nor traders have made up their minds whether to buy or sell. The summer season is adding to that uncertainty – now is the time for holidays and vacations, causing lower liquidity on the market.
Considering the support on the weekly time frame, however, I think that the possible direction is to the upside.
On the H1 time frame one can see a RSI divergence between four lows, which, if it reaches its limit, could reach 1.3183 – 1.3195.
It could be a good inflection point.
ReplyDeleteThank you for the analysis.
ReplyDeleteGood post!
ReplyDeleteVery helpful analysis, thank you for sharing!
ReplyDeleteExcellent Analysis! Thanks.
ReplyDeleteFurther decline might be expected.
ReplyDelete