FX.co ★ USD/CAD analysis for May 21, 2019

USD/CAD has been trading downwards and the CAD tested the level of 1.3397. We are expecting potential upside because we found strong rejection from the key support.

According to the H1 time-frame, we found that there is strong test and reject from the key support at 1.3399, which is sign that sellers got no interest in CAD. Additionally, we found that bullish divergence on the Stochastic oscillator, which is another sign of the potential strength. There is also a breakout of the down channel, which adds more potential for the upside. Watch for potential buying opportunities on the pullbacks with the first target at 1.3446.

Upward references:

Purple rectangle- 1.3446

Swing high – 1.3476

Downward reference:

Swing low – 1.3397

Key swing low – 1.3375