USDCAD Potential for Bullish Rise | 18th August 2022

On the H4, with the MACD indicators above zero, the price is above the ichimoku cloud and MA, we have a bullish bias that the price may rise to the 1st resistance at 1.29444, which is the overlap resistance. If the price breaks the 1st resistance, it may rise to the 2nd resistance at 1.29890, where the swing high, -27.2% fibonacci expansion and 50% fibonacci retracement are. Alternatively, the piece may drop to the 1st support at 1.28324, where the swing low and 50% fibonacci retracement are. IF the price breaks the 1st support, we can expect the price drop down to the 2nd support at 1.27292, which is in line with the swing low. Take note the intermediate support at 1.27861, the price tested many times in this area.

Trading Recommendation

Entry: 1.29444

Reason for Entry:Overlap resistance

Take Profit: 1.29890

Reason for Take Profit:Swing high, -27.2% fibonacci expansion and 50% fibonacci retracementStop Loss: 1.28324

Reason for Stop Loss:

Swing low and 50% fibonacci retracement