USD/CAD Technical Analysis: bull RSI divergence on 1H chart is calling a minor corrective rally

• The bullish divergence of the hourly chart relative strength index (RSI) validates the indecision in the marketplace – as indicated by yesterday’s doji candle – and is calling a minor corrective rally to an  immediate resistance of 1.3042.
• The primary trend remains bearish as the 5-day and 10-day moving averages (MAs) are trending sot in favor of the bears.

Hourly Chart

Spot Rate: 1.3002

Daily High: 1.3008

Daily Low: 1.2993

Trend: Intraday bullish

Resistance

R1: 1.3019 (50-hour MA)

R2: 1.3042 (resistance as per the hourly chart)

R3: 1.3086 (100-hour MA)

Support

S1: 1.2976 (previous day’s support)

S2: 1.2962 (Aug. 7 low)

S3: 1.2887 (Aug. 28 low)