Potential Reversal on The Most Important Psychological Level

Long

U.S. Dollar / Canadian Dollar (FX:USDCAD)

Updated

FX:USDCAD U.S. Dollar / Canadian Dollar

supportandresistance supplyanddemand candlestick usdcad psychologicalroundnumber reversal rsi_divergence

USDCAD is now heading towards the most important psychological level, 1.20000. As we can see from RSI(14) and Stochastic(14, 3, 3), both indicators are now hovering in the oversold territory. Plus, there is an RSI divergence formed and indicated with dashed line. And as I see, this level may be a bit special then previous 1.30000 as there wasn't any divergence formed when price reached 1.30000. So if there is any sign of reversal near 1.200XX level, it will be a good long entry for us as it will give a nice 1:2 risk to reward, with take profit at 1.243.

Comment:

I put a buy stop order at 1.22050 as I'm not sure at the moment if price will still continue going lower. I can see at this moment that 1.21 is a good support level for the past 3 days.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.