The pair has been consolidating within the support zone between 1.2280 and 1.2330 for a third day, while the RSI indicator on the H4 time frame has been developing a divergence.
Although I expect a continuation of the downward trend the probability to see a correction to the upside within the consolidation is quite large. If the limit of the RSI divergence is reached, then the correction could reach 1.2520.
I doubt that today we will see any significant movement, but we could follow how the D1 time frame bar will close in a few hours. If it closes as a spinning top or as a doji bar right above the support of the lower band of the Bollinger Bands that could be another signal for a rebound and a correction to the upside before the downward trend continues.
Very helpful analysis.
ReplyDeleteSideways consolidation continues for now.
ReplyDeleteYet another day the pair fails to find clear direction.
ReplyDeleteVery good analysis.
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDeleteInteresting analysis, thanks.
ReplyDeleteUsd/Cad has found immediate resistance at 1.2438.
ReplyDelete