FX.co ★ Short-term bullish divergence warning by RSI in USDCAD

USDCAD has fallen from 1.33 towards 1.32 as we initially expected in our analysis back in February 11th. Price has so far pulled back as low as 1.3225 back testing the resistance trend line that was broken. In the 4 hour chart we now observe a bullish divergence warning sign in the RSI.

Blue lines - bullish divergence

USDCAD is showing bullish divergence signs. This is a warning for bears that the downward move from 1.3330 might soon end. Resistance is at 1.3268 and support at 1.3215. Short-term trend remains bearish and there is no sign of a reversal yet. The RSI has not entered oversold levels yet. We were bearish at 1.33 and I prefer to be neutral or bullish at current levels as there is potential of another leg higher from around 1.32.