USDCAD, Potential For Bullish Bounce | 18th July 2022

On the H4, with price bouncing off the ichimoku cloud and moving in an ascending trendline, we have a bullish bias that price will rise from our 1st support at 1.30083 where the horizontal pullback support is in line with the 78.6% fibonacci retracement to the 1st resistance at 1.32281 in line with the horizontal swing high resistance. Alternatively, price may break the support structure at the 1st support and drop to the 2nd support at 1.29499 at the overlap swing low. Take note of the pullback resistance at 1.30794 in line with multiple swing highs.

Trading Recommendation

Entry: 1.30083 Reason for Entry:Horizontal pullback support and 78.6% fibonacci retracement

Take Profit: 1.32281

Reason for Take Profit:Horizontal swing high resistanceStop Loss: 1.29499

Reason for Stop Loss: overlap swing low