USD/CAD

On the daily chart of USD/CAD, a relatively weak, likely corrective divergence has formed. The price reversed from the target level of 1.3977. The MACD line is approaching the 1.3878 level at a steep upward angle.

Likely, the intersection point of the MACD line with the target level will create a point of attraction and, at the same time, a potential reversal point for the next upward movement, as illustrated by the dashed line in the chart. A consolidation of the price below the 1.3878 level and also below the MACD line will deepen the decline to the 1.3810 level—either to create a false breakout or for a medium-term downward move.

On the four-hour chart, the signal line of the Marlin oscillator is turning downward from the zero line. This indicates that the price may be able to break through the MACD line at 1.3927. Success at this level will pave the way for achieving the target of 1.3878.