Canadian Greenback, USD/CAD, Hanging Man – Technical Replace:
- Canadian Greenback continues to lose floor vs. US Greenback
- Hanging Man, RSI divergence exhibits fading momentum
- What are key ranges to look at for USD/CAD near-term?
The Canadian Greenback has been shedding floor to the US Greenback of late, however a better have a look at USD/CAD exhibits that the near-term uptrend is likely to be shedding momentum. On the day by day chart beneath, we are able to see that as costs climbed, adverse RSI divergence began to emerge. This underscored fading momentum, which may at instances precede a flip decrease.
Moreover, the trade charge left behind a Hanging Man candlestick sample. A confirmatory draw back push might open the door to a bearish reversal. Such an end result would place the concentrate on the 20-day Transferring Common (MA). The latter might maintain as help, reinstating the broader upside technical bias. Allow us to take a better have a look at the 4-hour setting to see the place near-term value motion might go.
Chart Created in TradingView
On the 4-hour chart beneath, we are able to see that adverse RSI divergence is extra pronounced. That is as costs are about to check highs from Might and June, making for a key zone of resistance round 1.3626 – 1.3667. A drop by the trendline locations the concentrate on the 100-period Transferring Common. The latter might maintain as help, sustaining the near-term upside technical bias.
Within the occasion of a flip decrease, key help is the 1.3502 inflection level. Extending decrease and thru the shifting common exposes the August 10th low of 1.3368. Past the latter sit the midpoint and 61.8% Fibonacci retracement ranges of 1.3295 and 1.3246, respectively. In any other case, pushing above the zone of resistance exposes the 78.6% and 100% Fibonacci extension ranges at 1.3692 and 1.3781, respectively.
Chart Created in TradingView
— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com
DailyFX offers foreign exchange information and technical evaluation on the traits that affect the worldwide forex markets.
