- USD/CAD’s hourly chart shows a bearish divergence of RSI.
- Hourly candlesticks also paint an intraday bearish picture.
The USD/CAD pair is trading near 1.4120, having hit a session high of 1.4153 more than an hour ago.
The pullback has confirmed a bearish divergence of the hourly chart relative strength index. The pattern occurs when the indicator prints lower highs contradicting higher highs on price and represent buyer fatigue.
As a result, a deeper pullback to levels below 1.41 could be seen. A similar message is being echoed by the bearish marubozu candle created in the 60 minutes to 02:00 GMT.
The case for an extended downward move would weaken if the spot finds acceptance above the session high of 1.4153.
Hourly chart
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Trend: Bearish
Technical levels
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