USDCAD Key Support|Bullish Divergence|Local Resistance|.618 Fib

FX:USDCAD   U.S. Dollar / Canadian Dollar
Evening Traders,

Today’s Analysis – USDCAD – strong sell off leading the market to oversold conditions, a bounce is probable into local resistance.

Points to consider,
- Impulse sell relief rally
- Structural support respected
- Local resistance (immediate target)
- Oscillators diverging
- Volume below average

USDCAD’s immediate trend is bearish with an impulse sell into a key level, structural support that is holding true.

A relief rally is probable into local resistance – backed by a valid double bullish divergence . As both oscillators are diverging from price, this indicates buy momentum coming into the market.

Current volume node is below average, an influx is highly probable upon a back test of the .618 Fibonacci. Follow through will be needed to reach local resistance target.

Overall, in my opinion, USDCAD is a valid long with defined risk. The market is due for a relief rally; price action is to be used upon discretion/ management of the trade.

What are your thoughts?

Thank you for following my work!

And remember,

“The expectation that you bring with you in trading is often the greatest obstacle you will encounter.”
― Yvan Byeajee

Join my free telegram!

Follow me on Twitter!

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.