USD/CAD Technical Analysis: Eyes falling trendline hurdle after the bullish RSI divergence

Omkar Godbole FXStreet Contributor

The USD/CAD pair is currently trading at 1.3117 and could rise test the falling trendline resistance, currently at 1.3170, as the relative strength index (RSI) on the 4-hour chart has diverged in favor of the bulls.

4-hour chart

The bullish divergence of the RSI occurs when the indicator clocks higher lows in response to lower lows in price and is widely considered an early indicator of a trend reversal.

In USD/CAD's case, the bull RSI divergence has opened the doors to 1.3170 - resistance of the trendline trending south from the Jan. 24 and Jan. 29 highs.

A move below 1.3068 would invalidate the RSI divergence and could yield a drop to the psychological support of 1.30.

Trend: mildly bullish

USD/CAD

Overview:
    Today Last Price: 1.3118
    Today Daily change: 5 pips
    Today Daily change %: 0.04%
    Today Daily Open: 1.3113
Trends:
    Daily SMA20: 1.3247
    Daily SMA50: 1.3371
    Daily SMA100: 1.3219
    Daily SMA200: 1.313
Levels:
    Previous Daily High: 1.3148
    Previous Daily Low: 1.3084
    Previous Weekly High: 1.3287
    Previous Weekly Low: 1.3069
    Previous Monthly High: 1.3664
    Previous Monthly Low: 1.3118
    Daily Fibonacci 38.2%: 1.3123
    Daily Fibonacci 61.8%: 1.3109
    Daily Pivot Point S1: 1.3083
    Daily Pivot Point S2: 1.3052
    Daily Pivot Point S3: 1.302
    Daily Pivot Point R1: 1.3146
    Daily Pivot Point R2: 1.3178
    Daily Pivot Point R3: 1.3209

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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