USDCAD - Dollar hidden strength
This is an interesting chart...
CAD is rallying since January. Even it was able to rally (USDCAD pair was falling) when the dollar had some pullbacks from the middle of February till the end of February.(green)
But now I see internal weakness. Price couldn't tag the lower trendline for weeks now. Though the dollar was falling in April USDCAD was not able to fall and tag the trendline (RED).
SO I think as now the dollar starts a real strong rally for a few weeks USDCAD will not be able to stay in this channel so it's going to break out soon - maybe next week.
Also notice the the divergence between MACD and the price (purple) and MACD wants to cross over
CAD is rallying since January. Even it was able to rally (USDCAD pair was falling) when the dollar had some pullbacks from the middle of February till the end of February.(green)
But now I see internal weakness. Price couldn't tag the lower trendline for weeks now. Though the dollar was falling in April USDCAD was not able to fall and tag the trendline (RED).
SO I think as now the dollar starts a real strong rally for a few weeks USDCAD will not be able to stay in this channel so it's going to break out soon - maybe next week.
Also notice the the divergence between MACD and the price (purple) and MACD wants to cross over
Commentaire:
Nice reversal !