FX.co ★ USDCAD Bearish Pressure | 1st Dec 2021

On the H4, with price rejecting the resistance on the stochastics indicator, we have a bearish bias that price will drop to 1st support at 1.26479 in line with the graphical overlap support and 50% Fibonacci retracement and possibly to 2nd support at 1.25505 in line with the graphical swing low support and 78.6% Fibonacci retracement from 1st resistance at 1.27914 in line with the horizontal swing high resistance and 127.2% Fibonacci extension level. Alternatively, we may see price break 1st resistance structure and head for 2nd resistance at 1.28919 in line with the horizontal swing high resistance and 100% Fibonacci projection.

Trading Recommendation

Entry: 1.27914

Reason for Entry:

Horizontal swing high resistance and 127.2% Fibonacci extension level

Take Profit: 1.26479

Reason for Take Profit:

Graphical overlap support and 50% Fibonacci retracement

Stop Loss: 1.28919

Reason for Stop Loss:

Horizontal swing high resistance and 100% Fibonacci projection.