FX.co ★ USDCAD Bearish Reversal | 24th Nov 2021

On the H4, with price expected to reverse off the support on the stochastics indicator and the a graphical horizontal level, we have a bullish bias that price will rise from 1st support at 1.26744 in line with the graphical overlap support and 38.2% Fibonacci retracement and possibly to 2nd support at 1.25505 in line with the graphical swing low support and 78.6% Fibonacci retracement to 1st resistance at 1.27659 in line with the horizontal swing high resistance and 78.6% Fibonacci retracement level. Alternatively, we may see price break 1st resistance structure and head for 2nd resistance at 1.28515 in line with the horizontal swing high resistance.

Trading Recommendation

Entry: 1.26744

Reason for Entry:

Graphical overlap support and 38.2% Fibonacci retracement

Take Profit: 1.27659

Reason for Take Profit:

Horizontal swing high resistance and 78.6% Fibonacci retracement

Stop Loss: 1.28515

Reason for Stop Loss:

Horizontal swing high resistance