USDCAD follows our strategy after the rejection at 1.3150.

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USDCAD follows our strategy after the rejection at 1.3150.

USDCAD follows our strategy after the rejection at 1.3150.

In our last USDCAD analysis we noted that the rejection and bearish reversal at the 1.3150-1.3130 area would lead to another pull back towards 1.30-1.29 and lower. Price got rejected at the back test of the broken trend line support and is now making new lower lows.

USDCAD follows our strategy after the rejection at 1.3150.

Red line -resistance

Green line- support

Blue line – bullish divergence

USDCAD is trading again below 1.30 making new lower lows. The RSI doesn’t follow and is instead providing us a bullish divergence. As we explained before, this is not a reversal signal, but just a warning. However if price continues lower we might see this divergence get canceled. So unless price confirms a reversal we remain bearish. In our last analysis we noted that as long as price is below 1.3150 we remain bearish. Our stop is lowered to 1.310 and if price reaches 1.29 we could lower stop to 1.30.

The material has been provided by InstaForex Company – www.instaforex.com

Source : https://www.fx.co/forex_analysis/quickview/197088/