USDCAD Potential for Bearish Drop | 9th September 2022

On the H4, with the price breaking the ascending channel, crossing the ichimoku cloud, and there's a possible "double top" pattern, we have a bearish bias that the price may drop from the 1st support at 1.30252, which is in line with the 38.2% and 61.8% fibonacci retracement to the 2nd support at 1.29676, where the 50% fibonacci retracement and overlap support are. Alternatively, the price may rise to the 1st resistance at 1.30729, where the overlap resistance is.

Trading Recommendation

Entry: 1.30252

Reason for Entry:

38.2% and 61.8% fibonacci retracement

Take Profit: 1.29676

Reason for Take Profit:

50% fibonacci retracement and overlap support

Stop Loss: 1.30729

Reason for Stop Loss:

Overlap resistance