USDCAD finds initial support, deeper down move eyed
USDCAD fell after completing a bearish Head and Shoulders (H&S) pattern, as expected. Prices are now digesting above support-turned-resistance anchored at 1.3154.
Negative RSI divergence points at ebbing bearish momentum, but that need not necessarily translate to reversal. Rather, it may simply flag a consolidative pause before the down move is reasserted.
The H&S pattern implies a measured-move objective near the 1.30 figure, which looks likely to bring prices within striking distance of major support dating back to mid-2021 (former resistance zone, rising trend line). Time will tell whether this region will mark the place of longer-term uptrend resumption or reversal.
Negative RSI divergence points at ebbing bearish momentum, but that need not necessarily translate to reversal. Rather, it may simply flag a consolidative pause before the down move is reasserted.
The H&S pattern implies a measured-move objective near the 1.30 figure, which looks likely to bring prices within striking distance of major support dating back to mid-2021 (former resistance zone, rising trend line). Time will tell whether this region will mark the place of longer-term uptrend resumption or reversal.
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