Showing posts with label S&R-RSI Divergence. Show all posts
Showing posts with label S&R-RSI Divergence. Show all posts

Monday, 21 August 2017

Can USDCAD resume it's uptrend?

USDCAD pair in 1 Hour timeframe. Price has created a bullish divergence with RSI (14). The price is bouncing back from a support area between 1.25708 & 1.25572.

If we switch the time frame to weekly and monthly, this area shows strong support. At the same time price just bounced back from outside of Bollinger band in the hourly timeframe.

Longer timeframe shows a bullish trend for this pair.  So everything is favoring a long position. Hopefully we can get into the trade soon.

GBPJPY pair is creating ascending triangle in weekly

GBPJPY pair H4 timeframe. This pair is also creating a divergence with RSI. As usual at a strong support zone created by 140.301 & 139.789.

This zone is also a strong zone which is likely to hold the price. If you switch to daily timeframe, the price is on the way to create a double-bottom formation which is also a sign of reversal.

If we switch to weekly time frame then the price is creating an ascending-flat-top triangle after a downtrend. And to be specific, the price is now on the lower ascending trend line which again indicates a possible reversal. I'm going for long at 140.95 with stop loss few pips below the support zone.

AUDNZD pair is creating bearish divergence

AUDNZD pair in daily time frame. This pair is creating bearish divergence with RSI. Interesting things to note that the pair is now residing at a resistance area between 1.08672 and 1.08386.

This is a strong area which is likely to hold the price below. Another favorable point is that the price is in the top band of the downward channel created in the weekly timeframe which again adds the odds in favor of shorting opportunity.

So let's see how the week starts.

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