USD/CAD Technical Analysis: Bullish RSI divergence seen in the hourly chart

• The bullish divergence of the relative strength index (RSI), as seen in the hourly chart, indicates scope for  a corrective rally toward the 200-hour MA of 1.3077.
• The major moving averages (50-hour, 100-hour and 200-hour) have shed bearish bias (flatlined).

Hourly chart

Spot Rate: 1.3010

Daily High: 1.3013

Daily Low: 1.2994

Trend: Bullish

Resistance

R1: 1.3033 (previous day’s doji candle high)

R2: 1.3077 (200-hour moving average)

R3: 1.3109 (July 16 low)

Support

S1: 1.30 (psychological support)

S2: 1.2975 (previous day’s doji candle low)

S3: 1.2951 (38.2% Fib R of Jan 31 low – June 27 high)