FX.co ★ Technical analysis on USDCAD for September 5th, 2023.

Red lines- bullish channel

Green line- bearish RSI divergence

USDCAD made a new higher high today at 1.3668. Short-term trend remains bullish as price continues making higher highs and higher lows. USDCAD remains inside the red upward sloping channel. Technically bulls remain in control of the trend. However we have two warning signals that bulls should not ignore. First is the bearish RSI divergence. The new higher high in price today was not followed by a higher high in the RSI. Secondly the daily candlestick pattern so far for today is looking like a bearish hammer reversal pattern. The long upper tail if followed by a negative candlestick with a lower low than today, will increase the chances of a top.