USD/CAD Technical Analysis: Retakes 1.30, 1H chart shows bull RSI divergence

• At press time, USD/CAD is trading at 1.3011, having clocked a 12-day low of 1.2980 yesterday on the easing of trade tensions and oil rally.
• The minor recovery has confirmed a bullish relative strength index (RSI) divergence on the hourly chart. Hence, the corrective rally could be extended further to 1.3040 (200-day moving average).
• Still, the path of least resistance remains to the downside, as indicated by the failed bullish breakout and the downward sloping 5-day, 10-day moving averages (MAs) and 50-hour, 100-hour, and 200-hour MA.

Hourly Chart

Spot Rate: 1.3011

Daily High: 1.3012

Daily Low: 1.2992

Trend: Intraday bullish

Resistance

R1: 1.3019 (daily pivot)

R2: 1.3040 (200-day MA)

R3: 1.3104 (10-day MA)

Support

S1: 1.30 (psychological level)

S2: 1.2980 (previous day’s low)

S3: 1.2959 (daily pivot S1)