USDCAD early reversal signs

📈 USDCAD Analysis – 1H Chart (June 19, 2025)

The USDCAD is showing signs of bullish exhaustion after a strong rally. The price is currently trading around 1.3710, just below the recent local high at 1.37117.

🔹 Bearish Divergence: Price action is forming higher highs, while RSI is forming lower highs — a classic bearish divergence, hinting at potential downside correction.
🔹 Support Zone: A clear demand zone is marked between 1.35800 - 1.36000, which acted as a breakout base and could serve as strong support if the price pulls back.
🔹 Ichimoku Cloud: Price is still trading above the cloud, indicating an ongoing uptrend. However, a potential retest of the cloud support is possible.
🔹 Dynamic Support: The 21 EMA is holding well, and price is currently retesting it.
🔹 RSI: RSI is above 50 but shows decreasing momentum, currently sitting near 59.26 with signal line crossing above at 64.36, suggesting weakening bullish momentum.

📊 Conclusion: The pair is overextended and showing early signs of reversal or correction. A break below the EMA and into the cloud may lead to a pullback toward the highlighted support zone. Watch price action closely for confirmation.