USDCAD, Bearish Pressure | 17th Dec 2021

On the H4, with price approaching the resistance of the stochastics and RSI indicator, we have a bearish bias that price will drop from 1st resistance at 1.28623 in line with the graphical swing high resistance to 1st support at 1.26104 in line with the horizontal swing low support and 50% Fibonacci retracement. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 1.30107 in line with the 161.8% Fibonacci extension and horizontal overlap resistance.

Trading Recommendation

Entry:1.28623

Reason for Entry:

Graphical swing high overlap resistance

Take Profit: 1.26104

Reason for Take Profit:

Horizontal swing low support and 50% Fibonacci retracement

Stop Loss:1.30107

Reason for Stop Loss:

Horizontal overlap resistance and 161.8% Fibonacci extension