FX.co ★ USDCAD bearish drop | 1ST Nov 2021

On the H4, with price on a downwards trend on the RSI indicator and showing that it is respecting the RSI trend line's resistance, we are expecting to see price dip from 1st resistance at 1.23996 in line with the 78.6% Fibonacci retracement to 1st support at 1.23571 in line with the 50% Fibonacci retracement levels and possibly even 2nd support at 1.23423 in line with the 61.8% Fibonacci retracement levels. Alternatively, we may see price break 1st resistance structure and head for 2nd resistance at 1.24276 in line with our horizontal swing high resistance.

Trading Recommendation

Entry: 1.23996

Reason for Entry:

78.6% Fibonacci retracement and Horizontal swing high resistance

Take Profit:1.23571

Reason for Take Profit:

50% Fibonacci retracement and Horizontal overlap support

Stop Loss:1.24276

Reason for Stop Loss:

Horizontal swing high resistance