- The greenback bulls are facing barricades at the downward sloping trendline placed from 1.3079.
- A Positive Divergence signals resumption in the dominant trend after a corrective move.
- The RSI (14) is oscillating in a 40.00-60.00 range which indicates a consolidation ahead.
The USD/CAD pair is displaying back and forth moves in a narrow range of 1.2910-1.2922 in the early Tokyo session. Earlier, the greenback bulls witnessed a corrective move after failing to sustain above the 1.3050 on Friday.
On an hourly scale, the major has displayed a Positive Divergence, which indicates a resumption of an uptrend after a corrective move. A Positive Divergence was recorded after the asset made a higher low at around 1.2907 while the momentum oscillator Relative Strength Index (RSI) (14) made a lower low. This dictates an oversold situation in an uptrend which is considered a bargain buy for the market participants. The dotted downward sloping trendline placed from Friday’s high at 1.3079 will act as a major hurdle going forward.
The major is auctioning between the 50- and 200-period Exponential Moving Averages (EMAs) at 1.2952 and 1.2895 respectively, which signals a consolidation ahead.
A decisive move above the 50-period EMA at 1.2952 will trigger the Positive Divergence and eventually will active the greenback bulls for an upside move towards the psychological resistance and Friday’s high at 1.3000 and 1.3079 respectively.
Alternatively, the Positive Divergence formation could negate if the asset drops below Thursday’s low at 1.2861. This will drag the asset towards June 10 high at 1.2813, followed by May 23 low at 1.2766.
USD/CAD hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.