By Admiral Markets
The USD/CAD has been dropping significantly without any substantial retrace, finally hitting the 1.2400 zone support. On H4 chart the pair is showing the bullish divergence so there could be a push to the upside. Above 1.2450 we might see a bullish price action towards 1.2536. Sellers should be waiting at the POC and if the price gets there we might see a rejection. POC 1.2600-15 (W H3, 38.2, historical sellers). The POC zone is very close to W H4 / M L4 so it adds additionally to its strength. Rejections might aim for sub 1.2400 levels, specifically 1.2360.
At this point it’s important to notice the bullish divergence and possible upward move on the pair.
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W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
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W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
M H4 – Monthly Camarilla Pivot (Very Strong Monthly Resistance)
M L3 – Monthly Camarilla Pivot (Monthly Support)
M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Article by Admiral Markets
Source: USD/CAD Bullish Divergence Could Push The Price Up
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