FX.co ★ USDCAD Bearish Continuation | 13th Oct 2021

On the H4, current price is moving below the ichimoku cloud suggesting a continuation of its bearish movement. We are expecting to see price fall to 1st support at 1.24216 in line with the 100% Fibonacci projection. Otherwise, we may see price do a retest at 1st resistance at 1.24977 in line with the 61.8% Fibonacci projection and the 23.6% Fibonacci retracement. Our bearish bias is further supported by the existing descending trend line.

Trading Recommendation

Entry:1.24984

Reason for Entry:

Horizontal overlap resistance and 61.8% Fibonacci projection

Take Profit: 1.24244

Reason for Take Profit:

Horizontal swing low support, 61.8% Fibonacci projection and 23.6% Fibonacci retracement

Stop Loss:1.25525

Reason for Stop Loss:

Horizontal overlap resistance, 61.8% Fibonacci projection and 50% Fibonacci retracement