NZDCAD: Divergence as Trend Reversal Signal

The price bounced from 0.83000 level. We have a bullish divergence which gives us a trend reversal signal. If the price can break the local downtrend line, it will confirm a possible trend reversal.

RSI is bullish, and it confirmed the price reversal. MACD histogram is bullish as well, and MACD lines are going to support an upward movement. DMI does not tell us that sellers are strong.

Based on these bullish signals, we can search for buy opportunities. It will be possible to buy based on the breakout above the downtrend line in the daily timeframe. But it will be better to search for possible entry levels for long trades using the hourly charts, and a pullback after the breakout.

Also, I draw your attention that there will be news soon. They will be able to push the market in any direction. Use stop orders in order to protect your capital and proper money management.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.