Title
USDCAD H4 | Running into resistance?
Type
Bearish Reversal
Preference:
Price is rising towards the pivot point of 1.33867 which is a swing-high resistance and could potentially reverse from here; we could see momentum carry price down to its 1st support at 1.33019 which is a pullback support.
Alternative scenario:
If price breaks above the pivot point, it could hit the 1st resistance at 1.34678 which is resistance that aligns with the 127.2% Fibonacci extension level.
Additionally, the Relative Strength Index (RSI) is displaying bearish divergence versus the price, suggesting a potential reversal in the near future..
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.